Definitions

Calls & puts, option prices and market fluctuations are probably not your daily business. Option and incentive plans are often considered as very technical matters and hard to understand.

We at Optiniti are happy to explain every technical term used. We like to use clear wordings and simple comparisons so everybody knows what we are talking about.

Option (call option)

An option gives beneficiaries the right (not the obligation) to buy an underlying share at a predefined price (strike price) for a certain period of time.

Option price

The price of the option. This price is calculated by a mathematical model. The option price follows the evolution of the underlying value but with a leverage.

Strike/Exercise price

The price that you will need to pay if you want to buy the underlying value.

Intrinsic value

An option consists of time value and intrinsic value. Intrinsic value is the value the option would have if it were exercised today.

Time value

An option consists of time value and intrinsic value. Time value has to do with the amount of time remaining until the end of the option’s maturity.

Maturity date

The maturity date of an option is a date that, once passed, will trigger the nullity of the option.

Exercise period

The period during which you can exercise or sell your options.

Blocking period

The period during which your options are blocked. That means you are not (yet) able to sell or exercise.

Acceptance period

The period during which you can accept the granted options. According Optiniti's ruling, you have 10 bank working days to accept your options.

1. Ruling

A ruling is an interpretation of the law that is proposed by an entity. Rulings need to be approved by the tax administration in order to be granted to the entity and they are valid for a period of 5 years before renewal. Optiniti has obtained its ruling beginning of 2023.

2. Black & Scholes formula

A mathematical formula to calculate the price of options, invented by the scientists Fischer Black and Myron Scholes.

3. Warrant

A warrant is a type of option. A warrant is quoted.