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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Equity Options

Definition:

See options. "Equity options" refers to options where the security in question is a stock (rather than a bond).

Example

You buy a $5 option to buy shares of your Uncle's favorite hot dog company in one month for the price of $100 per share. Congrats—you've bought an equity option.