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Options Glossary - Most Used Terms


Option Period

The time from when an option contract is created by a writer of that option to the expiration date; sometimes referred to as an option's 'lifetime.'

See Also:

Option: A contract that gives the owner the right, but not the obligation, to buy or sell a particular asset (the underlying stock) at a fixed price (the strike price) for a specific period of time (until expiration) . The contract also obligates the writer to meet the terms of delivery if the contract right is exercised by the owner.

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