What Is a Call Option? A call option is a contract that gives the buyer of the option the right to purchase a security, such as a specific stock, at a specific price (referred to as the strike price).

The Bjerksund-Stensland model is a key method for pricing American options. It helps investors determine optimal times for exercising options with dividends considered.

Option price is the value of an option contract. The option price is impacted by intrinsic value and extrinsic value. Intrinsic value is determined by the difference between the strike price of the ...

Options trading is the practice of buying or selling options contracts. Whether you buy or sell depends on how you think a stock will perform over a specific period of time. Many, or all, of the ...

A put option is a financial contract that provides an investor the right (but not obligation) to sell a stock at a designated price prior to an expiration date. Learn more about put options and how ...

An option is a financial instrument whose value is tied to an underlying asset; this is known as a derivative. Instead of buying an asset, such as company stock, outright, an options contract allows ...

In options trading, the extrinsic value of an option represents the portion of the option's price that's based on factors other than the immediate value of exercising it. Also known as “time value,” ...

Options trading involves derivatives that can quickly gain and lose value. Each options contract gives you the right but not the obligation to buy or sell 100 shares of an underlying asset at a ...

We talked recently about how new options terms and expiries have helped drive customer adoption and growth in options markets. We also saw that the most liquid options contracts also typically ...

Options are financial contracts that give the holder the right to buy or sell a financial instrument at a specific price for a certain period of time. Options are available for numerous financial ...