Oh and forgot to say

There should be a clause which means you don't have to buy shares at over the odds in the future if their market price then is lower than what you're being offered them for.

Strike price is what you will pay (fixed and agreed in advance) IF you wish to exercise the call option, I.e. purchase the shares - otherwise the option can expire without being exercised and I think you just get back your savings you've built up to fund the stock buy if the terms were favourable in the future

Hope that makes sense, struggling to keep my eyes open. Too many finance lecture memories sending me to sleep!

Otbc

Posted By: essexcanaryOTBC on January 3rd 2013 at 23:37:01


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