Definition of Seller's option

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TeachMeFinance.com - explain Seller's option




historic definition...

Seller's option -- A seller's option is, in effect, a put. In stocks sold on seller's option the seller may, when the option is for more than three days, put (deliver) the stock on any day within the specified time on one day's notice to the buyer. A future contract in grain, cotton, coffee or other speculative commodity is at the seller's option unless otherwise stipulated and gives the seller the right to deliver the commodity on any business day in the month of delivery on due notice to the buyer.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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