Basically, a possibility can be a security offered from 1 investor to a different. The option purchaser pays a premium to the choice author (the person selling the derivative).
Nevertheless, any price in the stock options is totally theoretical right until you physical exercise themi.e. until eventually you pay click here funds to purchase the shares at the workout selling price. After you have acquired the shares by way of this buy, you possess them outright, equally as you would very own shares purchased over the open industry.