It can be difficult to know the meaning of term option in Italy, as the terminology may be slightly different from the English language. In order to help with deciphering the terminology, it is helpful to know what option is in question, as well as some basic information about Italian. The following paragraphs offer a brief description of the options in Italy that you will encounter on your journey through the Italian capital.
Term option refers to an agreement between the buyer and seller for an amount of money to be exchanged for a particular set of securities at a specific date. An option is only exercised if the seller agrees to buy the securities. These securities may be stocks, bonds, shares, or other financial instruments. The purchaser is then entitled to sell their securities at a profit upon the expiry date of the option. In order to exercise the option, a contract is signed. However, the contract is not a binding agreement, and therefore there is no “taking” of property. In terms of Italian law, the purchaser may not exercise the option if they wish to exercise it later, unless they are obligated to do so by statute.
Call option refers to an agreement for a contract for the transfer of ownership of an underlying asset. The value of the asset does not actually change during the exercise process, as long as the buyer has made the contract. If the buyer decides to exercise their call option, they must pay a premium, as well as pay the brokerage commission and taxes. If the price of the underlying asset changes, the buyer will lose their investment.
Put option refers to an agreement for a contract for the transfer of ownership of an underlying asset. The value of the asset actually changes during the exercise process, as long as the buyer has made the contract. However, the value of the asset does not change until the day of maturity of the option. To exercise a put option, the buyer must pay the brokerage commission and taxes, along with the premium. If the price of the underlying asset changes, the buyer is not obligated to exercise the option unless it is purchased at a price that is below the option price. For this reason, most investors typically do not carry this option.
A call option can only be exercised by the person who owns the underlying asset. This means that the person who owns the stock, bond, or other financial instrument cannot exercise a put option if they already own the security. If a person who owns the security is the purchaser of an option, but is not the owner, the security must be owned by the seller in order to exercise it.
A put option is used as a hedge against a currency and, if exercised, it gives the seller the right to exchange a specified amount of currency for the option. If a specific currency decreases in value and the buyer wishes to purchase the option for the currency, he or she must make the payment of the premium on the option, and the seller has the right to convert the amount of the payment into the currency of the option.Maggiori informazioni sul sito FIBO Group