title that gives the right but not the obligation, to buy or sell an underlying asset (stock, index ...) to a fixed price before a certain date.
In the case of an option is the one who has received the premium buys shares on the open market and resells them to the buyer of the option price negotiated (Stricker).
Unlike the option (put or call) this is not the seller of the option selling these securities, but the company itself. When they are exercised, the company issues new shares and sell them to the exercise price. This increases the number of outstanding shares.
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