3. Introduction to options

The usage of the word stock is more commonly encountered in the US whereas share represents the preferred term in British English ↩︎

Descriptors: a word or expression used to describe or identify something ↩︎

Arbitrary: based on random choice or personal whim, rather than any reason or system ↩︎

Note on the underlying: the share has a minimum value of zero and (theoretically) no upper bound as it moves to the right. ↩︎

Note on the value: if the line is in green and in positive Y-axis territory, the value of the option is positive. If the value is negative and (a negative Y value) the line is coloured in red. ↩︎

Contingent: Dependent on or conditioned by something else ↩︎