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The Grantor and the Grantees are collectively referred to as the ?Parties? and each of them as a ?Party?.
Financial example 1: XYZ stock is currently trading at $50 per share. You believe that the price of XYZ stock will rise to $60 per share in the next month. You decide to buy a call option on XYZ stock with a strike price of $55 and an expiration date of one month from today. The cost of the option contract is $100.
In the film industry, an option agreement is a contract that "rents" the rights to a source material to a potential film producer. It grants the film producer the exclusive option, literally, to purchase rights to the source material if they live up to the terms of the contract and make a film (or series) from it.
The person granting the option is called the optionor (or more usually, the grantor) and the person who has the benefit of the option is called the optionee (or more usually, the beneficiary).
An options contract consists of two parties: the holder and the writer. The writer is effectively the seller of the contract, while the holder is effectively the buyer.
A memorandum of option agreement for use in California. This Standard Document is a recordable instrument used to provide third parties with constructive notice of a purchase option encumbering California commercial real property.
Options contracts are agreements between 2 parties (buyer and seller) regarding a potential future transaction on an underlying security. Such contracts generally include securities, commodities, and real estate. It will give the purchaser the option to buy or sell an asset at a later date for a specific price.
A seller of an options contract can also be referred to as the ?writer? of that options contract. Market Participants ? There are generally four types of market participants in options trading: (1) buyer of calls; (2) sellers of calls; (3) buyers of puts; and (4) sellers of puts.