Optioner

Optioner are financial instruments that give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified strike price before or at expiry. The term is common in Scandinavian languages, where optioner is the standard plural for options; in English, the word options is used. Most optioner are calls or puts, differing by whether the holder expects a price rise or fall.

Underlying assets include stocks, indices, commodities, currencies, and interest rates. A contract specifies a strike price, expiration date, and a premium paid by the buyer to the seller. Exercise styles vary: American options can be exercised any time before expiry; European options only at expiry. Settlement may be through physical delivery or cash.

Optioner are used for hedging, speculation, and income. Buyers gain leverage with limited risk relative to the asset; sellers collect the premium but assume risk if market moves against them. Corporate optioner are also used in employee stock option plans to grant employees the right to buy company shares at a predetermined price.

Pricing depends on the underlying price, strike, time to expiry, volatility, interest rates, and expected dividends. Common models include Black-Scholes and binomial models. Trading occurs on exchanges and in over-the-counter markets, with standardized contracts, clearing, and regulatory oversight. Tax treatment varies by jurisdiction and can apply at grant, exercise, or sale.

Warrants resemble options but are typically issued by a company, have longer maturities, and may be dilutive. Standard exchange-traded optioner are separate, standardized securities with independent market makers.