Glossary
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| Option The right to buy (call) or sell (put) a particular amount of a particular underlying at a fixed price on or before a particular date. |
| Option price The amount paid for the rights of an option. |
| Option Writer The opposite party of the option buyer, who is obliged in the case of an exercise of the option to deliver (call) or to draw (put) the underlying, and who receives the option price in return. |
| Options Options are derivative financial instruments. Options are handled as standardized, stock market agreements, giving the holder the right, but not the obligation, to buy (call) or sell (put) a specified amount of an underlying, within a fixed period and at a fixed price determined by contract agreement. |
| Out of the Money (OTM) A call option where the current rate of the underlying is lower than the strike price, or a put option where the current rate of the underlying is higher than the strike price. |