n investor who holds one of these options in a trading account is commonly said to have a position in that contract.
A standard equity call option (including LEAPS®) conveys a right, not an obligation, to its holder to purchase 100 shares of the underlying stock, at a specific price per share, for a predetermined amount of time.
n equity put option, on the other hand, conveys a right to its holder to sell 100 shares of the underlying stock, at a specific price per share, for a predetermined amount of time.
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