You are here: HomeOptionsDefinition and CharacteristicsWhat are the Rights and Obligations of the Option Buyer and Seller?

What are the Rights and Obligations of the Option Buyer and Seller?

The buyer pays an option premium to the seller, and thus acquires the right to buy the underlying instrument (when buying a call option), or sell the underlying instrument (when buying a put option) at the agreed exercise price within the option lifetime.

The seller of the option receives the option premium. However, if the option holder exercises his right, the seller in turn must accept the underlying instrument (when a call option is sold) or deliver the underlying instrument (when a put option is sold) at the agreed exercise price.

POE03010060

...in many cases the option holder does not exercise the option, but sells it again at the exchange.

There is no direct contractual relationship between buyers and sellers at Eurex Exchange. The clearing house acts as intermediary for both counterparties.

More details on the conditions for exercising Eurex options are available on the Eurex Exchange website.

POE03010060a

error messagebox
00:00

Go to top