Equity or Stock Options are option contracts for individual shares or stocks. They are settled by delivery of the Underlying equity. In the case of North American Options, the typical contract size (or multiplier) is 100 stocks, but this is not the same for every exchange, for example, FTSE Options contracts are 1000 stocks each.
Equity Options are typically American Style, which means they can be exercised at any time prior to expiry. Note, the term American Style does not mean the expiry policy only applies to US stocks, stocks in other regions also have American Style Exercise terms.
Contributed by: Ralph Windsor
Equity Options are typically American Style, which means they can be exercised at any time prior to expiry. Note, the term American Style does not mean the expiry policy only applies to US stocks, stocks in other regions also have American Style Exercise terms.
Related Directory Entries
External Links
Equity vs. Index Optionshttp://www.optionseducation.org/strategies_advanced_concepts/advanced_concepts/index_options/equity_vs_index_options.html
OIC article on the difference between stock and index options.
View OIC Options Glossary in Options Market Glossary Directory
Options Quick Facts - Equity Calls & Putshttp://www.cboe.com/learncenter/concepts/basics/equity.aspx
CBOE introductory article explaining equity options
View CBOE Options Dictionary in Options Market Glossary Directory
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