option price

option price definition - finance
The price at which an option contract is quoted. An option contract gives the holder the right to buy or sell a certain security at a specific future time at a set price. If the option is purchased, it is based on 100 shares of stock, so purchasing one option priced at $15 means that the purchaser bought an option for $1,500.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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