What is a stock option contract?

1 Answer

Answer :

A stock option contract gives the buyer the option to sell or buy for a certain price during a certain period of time. All stock option contracts represents 100 shares of the stock or index.

Related questions

Description : Derivatives contract which gives the buyer/holder of the contract the right(but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period is ... B. Option Contract C. Index Futures contract D. Mini Derivative contract E. None of the Above

Last Answer : B. Option Contract Explanation: Options Contract is a type of Derivatives Contract which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period.

Description : Which of the following is false with respect to minor entering a contract? A. An agreement with or by a minor is void ab initio B. A minor can be a beneficiary of a contract C. The ... be enforced at the option of the third party D. A minor cannot ratify a contract on attaining majority

Last Answer : C. The contracts involving a minor as a beneficiary may be enforced at the option of the third party

Description : A Void Contract A. Is void from the very beginning? B. Enforceable at the option of both the parties. C. Enforceable at the option of one party D. Not enforceable in the court of law

Last Answer : D. Not enforceable in the court of law

Description : In developing a new herbicide, Atwell Chemicals comes up with two formulations. Option 1 is more effective in killing weeds but has a questionable impact on ground water. Option ... following moral philosophies? A)Egalitarianism B)Utilitarianism C)Ethical directionism D)Contract theory E)Pluralism

Last Answer : B)Utilitarianism

Description : An agreement is a Voidable Contract when it is (a) Enforceable (b) Enforceable by Law at the option of the aggrieved party (c) Enforceable by both the parties (d) Not enforceable at all.

Last Answer : (b) Enforceable by Law at the option of the aggrieved party

Description : Which of the following is false with respect to minor entering a contract? (a) An agreement with or by a minor is void ab initio (b) A minor can be a beneficiary of a contract (c) The ... may be enforced at the option of the third party (d) A minor cannot ratify a contract on attaining majority

Last Answer : (c) The contracts involving a minor as a beneficiary may be enforced at the option of the third party

Description : Why is it possible to buy an open call option with a strike price below the current stock price?

Last Answer : answer:You would not make a profit because the cost of the option added to the price would still be more than the current price of the stock. This is what is called the premium. However if ... to rise and if the premium was low you could effectively acquire more stock control for a larger return.

Description : What is a stock option and are they good?

Last Answer : All fad diets work in the short term. The Csiro diet will work in helping you to lose weight, but the best way to keep weight off is through proper diet and exercise.

Description : Who is offering a good rate on stock option loans?

Last Answer : A stock option loan is not a loan to obtain stocks. A stock option loan is a loan based on stocks you own yourself. You can obtain a stock option loan based on the value of your stocks, ... of the collateral's worth and as the borrower you get to keep the market appreciation of the stocks.

Description : What are stock option charts for?

Last Answer : Stock option charts is for you to see how the stocks are doing each day. It helps you to decide wether or not to invest in them. Through this, you may get lucky.

Description : Where can I find information on stock option volatility?

Last Answer : There are quite a few web sites that list stock volatility including Bloomberg. They not only display information about each company, but a long history of their stock prices so you can see the long-term viability of a stock and its options.

Description : What is a stock option accounting function?

Last Answer : A stock option account is going to hold your stocks and keep track of whether they are up, or down, or balanced. It will also hold your funds, like mutual funds, and savings all accountable.

Description : What options are available to me when my stock option vesting period is up?

Last Answer : You have three options once the vesting period is over. You can buy shares at their vested value and hold them for a long time, you can buy shares at their vested value and then sell them after the ... applicable), or you can buy shares at their vested value, keep some and sell the rest. Good luck!

Description : What is a stock option agreement?

Last Answer : A stock option agreement is a contract between two parties that that allows one party to buy or sell a particular asset at an agreed upon price at a future date. Professional is usually a good way to go. That way you are sure all the details are fine tuned by someone who knows what they are doing.

Description : What is the point of a stock option loan?

Last Answer : Well a stock option loan is an derivative financial instrument that specifies a contract between two parties for a furture transaction on an asset at a reference price. The buyer of the ... engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction.

Description : What is future and option in stock market?

Last Answer : A futures contract is an agreement to buy or sell on date A, quantity B of stock C for price per share D. When date A comes around, you must buy the stock for that price. How this can ... different: they are like futures but you have the right, not the obligation, to complete the transaction. If yo

Description : Mark the incorrect option a) The articles of stock such as plant and machinery, furniture and fixture are classed as “Dead stock” b) Consumable and perishable articles come under the term “Stores” c) Both the A and B d) None of these

Last Answer : d) None of these