CG12301 - Options: put option or call option

The terms put option and call option are frequently used

• A PUT OPTION is an option binding the grantor to buy.
• A CALL OPTION is an option binding the grantor to sell.

Thus if the option is exercised the asset is

• put into the hands of the grantor - a put option, or
• called for from the grantor - a call option.

If the option is not exercised within the time (or on the day) specified, the option expires.