Put and Call Options
If you buy an options contract, it grants you the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. A call option gives the holder the right to buy a stock and a put option gives the holder the right to sell a stock.
Table of contents
- Call option.
- Put option.
Option Put and Call
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Call and Put Options
A put and call option is an agreement between a vendor of a property (usually called the grantor) and another person (usually the called grantee) under which: … The call option is normally exercisable over a defined period and then the put option period follows.
A call option agreement is where the grantor gives the grantee (also referred to as the ‘option holder’) the right, but not the obligation, to buy shares in a company. The option is usually over a pre-determined number of shares at a specified price (sometimes referred to as the ‘exercise’ or ‘strike’ price).