24-3 Option Terminology Call Option Right to buy an asset at a specified exercise price on or before the exercise date Put option Right to sell an asset at a specified exercise price on or before the exercise date Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 24- 3 Irwin/McGraw-Hill Option Terminology Put Option Right to sell an asset at a specified exercise price on or before the exercise date. Call Option Right to buy an asset at a specified exercise price on or before the exercise date