Before we delve into the history of options, it would be appropriate to look at the definition of an option.
Definition
Options are not financial instruments in themselves but are a financial derivative whose value is the underlying asset it represents. The option is a contract (an agreement) written by a seller (option writer) to a buyer (option holder), which offers the buyer the right but not the obligation to buy (call option) or sell (put option) a financial asset at a predetermined price (strike price) on a specific date (expiration date) in the future. In return for this right, the option buyer pays a premium to the option writer.
A call option gives the buyer the right to buy an underlying asset ...
Get Mastering Options now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
