European options – an option of the European type possesss a right that could only be exerted in the date of maturity. The options can be of purchase ' ' calls' ' that to give to the bearer the right to buy or of sales ' ' puts' ' that to give to the bearer the right of vender. The purchase options are used in Brazil, over all of the American type and with them the most diverse strategies are mounted, want either as protection, hedge, want either as leverage, want either with intention to acquire the action object, in the case of the active object to be an action. The purchase option to give the right, to its bearer, to buy the action to one definitive price and in and up to one determined date. In this context, thrower, person who receives the prize, is with the obligation of vender the action object, when he will be requested and until the expiration of the option for the agreed price.
It functions, accurately, the inverse one of the action of sales, that we will see after that. The terminology used in the sales and purchase options is the same ones. The representative series of the expirations of the purchase options, as well as the sales options, are represented by letters of our alphabet, starting for the letter ' ' A' ' finishing in the letter ' ' M' ' , each letter, in this sequence, represents the months of the year. being thus, option VALEA46, to read itself: option of purchase, derivative of action VALE5, with expiration in January and strike R$ 46,00, VALEL46, to read itself: option of purchase, derivative of action VALE5, with expiration in December and strike R$ 46,00. In such a way, if we bought one of the options above, would have that to pay the prize and would be buying the right to buy action object, not it obligation, until or in the expiration of the option for R$ 46,00.