Option
Gives the holder the right (not obligation) to buy/sell an asset at a set price.
Detailed Description
Option
What are the two main types of options?
The two main types of options are call options and put options.
What is the difference between American and European options?
American options can be exercised at any time before expiration, while European options can only be exercised at expiration.
What does the term 'strike price' refer to?
The strike price is the predetermined price at which the option can be exercised.
What is an 'in-the-money' option?
A call option is in-the-money if the underlying asset's price is above the strike price; a put option is in-the-money if the asset's price is below the strike price.
How can options be used in real estate?
Options in real estate can be used as lease options or purchase options, allowing flexibility for tenants and investors.