Businessman Eitan Eldar explains: a stock option consists of securities that can be traded on the stock exchange, which have a limited lifespan up to their execution date, which usually lasts for several years. These options are provided for the underlying assets that may be shares, commodities, currency pairs and indices.
Also, the value of the stock options are determined in accordance with supply and demand in the market, which gives the owner the option to determine whether to execute the particular share, this according to a predetermined date and price. However, Eitan Eldar stresses, if the options are not executed before the expiry date, they are actually worthless.
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