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The Colors of All Glowing Objects Have the Same Origin

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The colors of all glowing objects have the same origin: They come from atoms and molecules that have been excited to states of high energy. Atoms in burning fireworks and stars become excited by absorbing energy as heat. They then throw off their excess energy as light. The colors emitted by an atom depend on how its electrons are arranged. So by investigating the colors an atom emits, we can determine its internal structure. Loretta Jones and Peter Atkins, Chemistry, 4th ed.


Definitions:

Strike Price

The specified price at which the buyer of an option can buy (call) or sell (put) the underlying security or commodity.

Put Options

Options contracts that give holders the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Exercise Price

The predetermined price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying asset.

Call Options

Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a set time frame.

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