option holder

option holder definition - business

option holder

The owner of an option to purchase (call) or sell (put) an asset such as shares of common stock or a futures contract. The option holder pays the premium and has the alternative of using the option or allowing it to expire. An option holder's loss is limited to the amount of the premium required to purchase it.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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