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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
, see all updates

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.