Stock option? Crossword Clue

 The answer to the crossword clue "Stock option?" can be either CALL (4 letters) or PUT (3 letters). These are both types of options that give the holder the right to buy or sell a stock at a specified price on or before a specified date.

A call option gives the holder the right to buy the stock at the specified price, while a put option gives the holder the right to sell the stock at the specified price.

The price at which the stock can be bought or sold is called the strike price. The date on which the option can be exercised is called the expiration date.

Options are often used by investors to hedge their bets or to speculate on the future price of a stock.

Here is an example of how a call option might be used:

An investor believes that the price of a stock is going to go up in the future. They buy a call option with a strike price of $100 and an expiration date of one year.

If the price of the stock goes up to $120, the investor can exercise their option and buy the stock at $100. They can then sell the stock immediately for a profit of $20 per share.

Here is an example of how a put option might be used:

An investor owns 100 shares of a stock and is worried that the price of the stock is going to go down. They sell a put option with a strike price of $100 and an expiration date of one year.

If the price of the stock goes down to $80, the investor's option will be exercised and they will be forced to sell their 100 shares of stock for $100 per share. This will limit their losses on the stock.

I hope this helps! Let me know if you have any other questions.