ESSENTIAL INGREDIENTS OF AN OPTION CONTRACT
An options contract has four essential ingredients:
1. The name of the company on whose stock the option contract has been derived.
2. The quantity of the stock required to be delivered in the case of exercise of the option.
3. The price, at which the stock would be delivered, or the exercise price or the strike price.
4. The date when the contract expires, called the expiration date.
An options contract has four essential ingredients:
1. The name of the company on whose stock the option contract has been derived.
2. The quantity of the stock required to be delivered in the case of exercise of the option.
3. The price, at which the stock would be delivered, or the exercise price or the strike price.
4. The date when the contract expires, called the expiration date.