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  3. trade, above, expiration, respond, strike, profitable, seller, how, most, financial In general, an option gives to the buyer

trade, above, expiration, respond, strike, profitable, seller, how, most, financial In general, an option gives to the buyer

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问题     trade, above, expiration, respond, strike, profitable, seller, how, most, financial
    In general, an option gives to the buyer the right, but not the obligation, to buy or sell a good, whereas the option seller must【21】accordingly. Many different types of option contracts exist in the【22】world. The two major types of contracts【23】on organized options exchanges are calls and puts.
    A call gives to the buyer of the option contract the right to buy a specified number of units of an underlying asset, at a specified price called the exercise or【24】price, on or before a specified date called the expiration date or strike date. A put gives its the buyer the right to sell a specified number of units of an underlying asset at a specified price on or before a specified date. In all cases the【25】of the option contract, the writer, is subordinate to the decision of the buyer, and the buyer exercises the option only if it is【26】to him or her. The buyer of a call benefits if the price of the asset is【27】the exercise price at expiration. The buyer of a put benefits if the asset price is below the exercise price at expiration.      The complete definition of an option must clearly specify【28】the option can be exercised. A European - type option can only be exercised on a specified date, usually the【29】date. An American -type option can only be exercised by the buyer at any time until the expiration date. American options are used on【30】of the organized options exchanges in the world.  Both types of options can be freely traded at any time until expiration.
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