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Autor:  asdfih
E-mail:  não-disponível
Data:  30/SET/2005 1:23 PM
Assunto:  Calls and Puts
 
Mensagem: 

I know this question might be a little tough, because it is kind of specific, but if you guys are willing to help. In Financial Market, there is a kind of contract called "options", which gives the holder the RIGHT (not the obligation) of buying/selling something to the issuer of the option. You can read more about it here

http://www.riskglossary.com/link/option.htm

Then comes the question, there are two main kinds of options: the "calls" and the "puts". A call option is an option that gives you the right to BUY something, while the put option gives you the right to SELL something. I want to know it there is an origin of these names "call" and "put".

I have a theory that the "call" comes from the expression "make a call" in the sense of making a decision, because you have the right to buy, and then you 'make the call' if you want to buy it of not, at the expiration. Does this make sense?

Have you got any idea about an expression that could make sense to "puts"? Something like putting the decision on another party´s hands, perhaps?

Very sorry for the long post, and thanks in advance


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 English Made in Brazil -- English, Portuguese, & contrastive linguistics
 Calls and Puts  –  asdfih  30/SET/2005, 1:23 PM
Calls and Puts  –  David  30/SET/2005, 3:26 PM

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