The seller of the option has the obligation to sell the commodity or futures contract or to buy it from the option
buyer at the exercise price if the option is exercised.
Not exact matches
At the time of the takeover the Canadian government and foreign
buyer embark on a whitewashing
exercise to make the deal palatable to Canadians.
If that
buyer decides to
exercise his right to buy the stock
at $ 50 / share then the person who sold him the call options is obligated to sell 100 shares of ABC stock to him
at $ 50 / share.
If the put
buyer does not
exercise his or her right to sell the stock before the predetermined time, the options contract expires and the opportunity to sell the stock
at the strike price will cease to exist.
If the call
buyer does not
exercise his or her right to buy the stock before the predetermined time, the options contract expires and the opportunity to buy the stock
at the strike price will cease to exist.
Likewise, the seller of call options is obligated to sell stock
at a certain price by a certain date if the
buyer chooses to
exercise his right.
Options Trading is a form of contract in which the
buyer of the option has the right to
exercise his option
at a specified price within a specified period of time.
Puts can also be uncovered, if you don't have enough cash in your brokerage account to buy the security
at the option's strike price, should the option
buyer choose to
exercise it.
Within the maturity period (two months in this example), the
buyer of the option can call it and purchase
at the
exercise price (100 in this example).
The
buyer can just let the option go unexercised if the
buyer does not want the stock
at the
exercise price.
Likewise, the seller of a call option is obligated to sell stock
at a certain price by a certain date if the
buyer chooses to
exercise his right.
Options can be
exercised by the option
buyer at any time on or before their expiration date.
If that
buyer decides to
exercise his right to buy the stock
at $ 35 / share then the person who sold him the call option is obligated to sell 100 shares of XYZ stock to him
at $ 35 / share.
To his horror, ABC is
at $ 30 on expiration day and the option
buyer is
exercising his right to pay $ 25 / share for 100 shares.
While what @quid says is true, it should also be noted that as a put seller, one needs to be aware that the
buyer can decide to
exercise early,
at any time during the contract's life, and you're on the hook.
The seller of a call option, also referred to as a writer, is obligated to sell the shares of the underlying stock
at the strike price if a
buyer decides to
exercise the option to buy the stock.
If an option
buyer's position becomes profitable and he is able to
exercise his option, the option seller will be required to take the opposite position which will be a loss
at the time it is opened.
The
buyer of the put would
exercise the right to sell to you
at $ 35.
Your
buyer would also
exercise their put, forcing you to buy their shares
at $ 35 / share.
If the price of the security falls below the strike price before the expiration date, the
buyer exercises his option and sells the security
at the strike price thus saving himself from the loss of selling
at the lower current market price; however, if the price of the security remains the same or increases, he can choose to not
exercise the option and earn profit.
Call Option is a derivative contract between two parties wherein the
buyer of the call option has the right to be able to
exercise his option and buy a particular asset during a specified period of time,
at a specified price.
The price
at which the
buyer of a call (put) option may choose to
exercise his right to purchase (sell) the underlying futures contract.
An option which gives the
buyer the right, but not the obligation, to sell the underlying futures contract
at a particular price (strike or
exercise price) on or before a particular date.
If the market price falls, the put
buyer can
exercise his right to sell
at the higher price.
If the
buyer does
exercise his right, you must buy 100 shares of the stock
at the strike price.
Conversely, a put option gives an investor the right, but not the obligation, to sell an underlying security
at a specified price (strike) within a specific time period, therefore a
buyer of a put may
exercise the put and benefit when the underlying security goes below the option strike.
The strike price (or
exercise price), is the price
at which
buyers can
exercise their rights under the contract.
First of all, the statute does not apply
at all to rent to own contracts with a term of 180 days or less, so if your tenant -
buyer can
exercise the option within 180 days, you don't have to worry about the statute.