ostuoptsiooni

Ostuoptsioon is a Finnish term that translates to "purchase option" or "call option" in English. It refers to a contract that gives the buyer the right, but not the obligation, to purchase an underlying asset at a specified price, known as the strike price, on or before a certain date, the expiration date. The seller of the option, in turn, receives a premium for granting this right.

In financial markets, ostooptio is commonly used for speculation or hedging. Speculators might buy an ostooptio if they believe the price of the underlying asset will rise above the strike price before expiration. If the asset's price does indeed increase, the buyer can exercise the option, buy the asset at the lower strike price, and potentially sell it at the higher market price for a profit. The maximum loss for the buyer is limited to the premium paid for the option.

For hedgers, ostooptio can be used to protect against rising prices. For example, a company that anticipates needing to buy a commodity in the future might purchase an ostooptio to lock in a maximum purchase price, thereby mitigating the risk of price increases.

The value of an ostooptio is influenced by several factors, including the current price of the underlying asset, the strike price, the time to expiration, the volatility of the asset, and interest rates. The option is considered "in the money" if the asset's price is above the strike price, "at the money" if they are equal, and "out of the money" if the asset's price is below the strike price.