Options
Māori translation:
Definition
Options refers to financial contracts - called derivatives - that mean buyers have the right, but are not obligated, to buy or sell an underlying asset - such as stock, ETFs, commodities, indexes, interest rates, foreign currencies, or bonds - at a pre-agreed price and on a specified date. This is different from futures, where the buyer must buy the asset at the agreed price and date. There are two option types:
- Calls: Give the buyer the right to buy the asset at a specific price on or before a specific date without being obliged to complete the purchase
- Puts: Give the seller the right to sell the asset at a specific price on or before a specific date without being obliged to complete the sell.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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