10.4 SPECIFICATION OF STOCK OPTIONS
In the rest of this chapter, we will focus on stock options. As already mentioned, a standard exchange-traded stock option in the United States is an American-style option contract to buy or sell 100 shares of the stock. Details of the contract (the expiration date, the strike price, what happens when dividends are declared, how large a position investors can hold, and so on) are specified by the exchange.
Expiration Dates
One of the items used to describe a stock option is the month in which the expiration date occurs. Thus, a January call trading on IBM is a call option on IBM with an expiration date in January. The precise expiration date is the third Friday of the expiration month and trading takes place ...
Get Options, Futures, and Other Derivatives, 10th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
