Option o Kinds of Periods American Option: some time in the future European Option: some day in the future o SpecIfIcation buyer, seller, price, quantity, term Category ca‖! Option it gives the holder the right to call for, or buy, a certain number of shares at a predetermined price o bull: someone expects share prices to rise Put OPtion o it gives the holder the right to sell a specified number of shares at a predetermined price. bear: someone expects share prices to bear Stag someone who buys a new issue of shares with the intention of selling as soon as shares come onto the market.(Premium)Option • Kinds of Periods – American Option: some time in the future – European Option: some day in the future • Specification – buyer, seller, price, quantity, term • Category – Call Option • it gives the holder the right to call for, or buy, a certain number of shares at a predetermined price. • bull: someone expects share prices to rise – Put Option • it gives the holder the right to sell a specified number of shares at a predetermined price. • bear: someone expects share prices to bear – Stag • someone who buys a new issue of shares with the intention of selling as soon as shares come onto the market. (Premium)