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.