Open Access. Powered by Scholars. Published by Universities.®
![Digital Commons Network](http://assets.bepress.com/20200205/img/dcn/DCsunburst.png)
Physical Sciences and Mathematics Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Physical Sciences and Mathematics
Keeping Your Options Open: An Introduction To Pricing Options, Ryan F. Snyder
Keeping Your Options Open: An Introduction To Pricing Options, Ryan F. Snyder
Senior Independent Study Theses
An option is a contract which gives the holder of the option the right, but not the obligation, to buy or sell a given security at a given price, which is called the strike price. For example, suppose Yahoo stock is currently trading at $10 per share. A person could buy an option that gives him or her the ability to purchase shares of Yahoo stock for $12 in one year. If the price of Yahoo stock is greater than $12 in one year, the holder of the option will make money. However, he or she will not use the …