An option's strike price is the price at which the contract's underlying assets may be sold (in the case of a put option) or purchased (in the case of a call option) by the option contract's owner.

A call option is a contract that guarantees its owner the right to buy a certain number of shares of a stock at a particular strike price on or before a specific expiration date. A call option is ...

A greenshoe option is a provision in an initial public offering (IPO) underwriting agreement, allowing underwriters to sell more shares than initially planned if demand exceeds expectations.

While there's the cost of the premium, doing this still can still possibly defray some of their losses if Company ABC falls in price, since that could mean the put option gains value. In other ...

Exercise means to put into effect the right to buy or sell the underlying financial instrument specified in an options contract. In options trading, the holder of an option has the right ...