There are two main types of options: call options, which give the holder (buyer) the right to buy the underlying asset, and put options, which give the holder (buyer) the right to sell the underlying asset.
A put and call option agreement for use by a private limited company where the seller grants the buyer a call option over shares and the buyer grants the seller a put option over the same shares.
We have 5 steps. Step 1: Decide on the issues the agreement should cover. Step 2: Identify the interests of shareholders. Step 3: Identify shareholder value. Step 4: Identify who will make decisions - shareholders or directors. Step 5: Decide how voting power of shareholders should add up.
Buying call options can be attractive if an investor thinks a stock is poised to rise. It's one of two main ways to wager on a stock's increase. The other way is by owning the stock directly. Buying calls can be more profitable than owning stock outright.