Search
Generic filters
Filter by Categories
Accounting
Banking

Derivatives




Grantor


A trader that sells (writes or issues) an option contract to a market participant, assuming the obligation (i.e., standing ready) to buy or sell the underlying (of the option) if the option holder exercises the option. Upon exercise (in the case the option is in the money, ITM, for the holder), the grantor may be required to settle in cash or deliver the underlying physically to the option holder.

It is also known as an option writer or option seller.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*