Put option terminology management


Put option terminology management


Conversely, a put option loses its value as the underlying stock increases and the time to expiration approaches. The buyer of a put option believes the underlying asset will drop below the exercise price maagement the expiration date. The exercise price is the price the underlying asset must reach for the put option contract to hold value. A AdjustmentsA change to contract terms due to a corporate action (e.g., a merger or stock split). Depending on the corporate action, different contract terms (including strike price, deliverable, expiration date, multiplier etc.) could be adjusted.

An adjusted option may cover more or less than the usual 100 shares. For example, after a 3-for-2 stock split, the adjusted option will represent 150 shares.




Put option terminology management

Terminology put option management

Put option terminology management



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