"Good answer, but I lied. I do have more questions for you. What's an option? Now let's talk about derivative securities. My stomach will wait; I'll do mind control."
"Uh, okay. Basically, an option is a contract giving the holder the right to buy (call) or sell (put) the underlying security at an agreed-upon price (the strike price). The holder has this right up until the expiration of the contract, or the exercise date.
"The person selling the contract is called the option writer, and the...
Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!