Options

Options

by Richard C. Wilson & Family Offices Group Association Team

Family Office Definition: Options

Options definition:  Options are derivative securities that are bought and sold to give the holder the right (but not an obligation) to trade stocks at a specified price during the term of the option.  The holder may exercise their right or let the option expire without action at the end of the term; however, the seller of an option is obligated to trade per the contract if the holder chooses to act.  Calls and puts are two types of options.

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