Examlex
Because it is changing all the time, it is impossible to avoid prejudicial language.
Real Option
The opportunity to undertake certain business initiatives, such as deferring, abandoning, expanding, or contracting a project, based on future events.
Underlying Asset
A financial asset or instrument upon which a derivative’s price is based, including stocks, bonds, commodities, or currencies.
Call Option
A financial contract that gives the holder the right, but not the obligation, to buy a stock or other asset at a specified price within a certain period.
Put Option
A financial contract giving the option buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified timeframe.
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