Stock Options

Definition:

A right, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date. In the United States, Stock Options typically can be exercised any time between the date of purchase and the date of expiration. In Europe, Stock Options typically can only be redeemed after a specified date.

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