OPTION: The right (not the obligation) to buy or sell a SPECIFIC STOCK at a certain PRICE for a limited TIME. ****ONE Option Contract = ONE HUNDRED Shares of Stock**** Question: An Option: 1.___ Obligates you to buy the underlying stock 2.___Has an expiration date. 3.___ Can only be bought. Answer: 2 When you Think the Underlying Stock will go Up. 1. Every … Continue reading WHAT IS A STOCK OPTION?