InvestorQ : What are stock options and how do they differ from index options?
Anamika Sodhani made post

What are stock options and how do they differ from index options?

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Anamika Sodhani answered.
2 years ago


Options contracts where the underlying asset is an equity stock are termed as Options on stocks. Originally, stock options were of American style options cash settled or settled by physical delivery. Currently all stock options are also in the form of European options only. Prices are normally quoted in terms of the premium per share, although each contract is invariably for a larger number of shares, e.g. 100. Unlike index options (which are rights on an index), the stock options are rights on specific stocks.