Inventory choices are a kind of economic instrument that give the customer the precise, however not the duty, to purchase or promote a inventory at a specified value on or earlier than a sure date. They’re usually used as a type of compensation for workers or as a technique to speculate on the longer term value of a inventory.
There are two primary varieties of inventory choices: calls and places. A name choice provides the customer the precise to purchase a inventory at a specified value, whereas a put choice provides the customer the precise to promote a inventory at a specified value. The strike value is the value at which the customer should buy or promote the inventory, and the expiration date is the date on which the choice expires.