WHAT IS A STOCK OPTION? – Lesson 5

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 stock2.___Has an expiration date.3.___ Can only be bought. Answer: 2 When you Think the Underlying Stock will go Up.   1. Every underlying stock has an … Continue reading WHAT IS A STOCK OPTION? – Lesson 5