An equity option (Swedish: aktieoption), also called a stock option, is an option whose underlying asset is a share. A call option gives the right to buy the share at a predetermined strike price, while a put option gives the right to sell it..
In unlisted companies, equity options often appear in incentive programs, where vesting governs when they can be exercised. The new owner is entered in the share ledger only once shares are allotted. Until then, the options belong in the company's cap table.

An option gives the holder the right, but not the obligation, to buy or sell an asset at a set price.
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A call option gives the holder the right, but not the obligation, to buy a share at a set price.
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A strike price is the predetermined price per share at which an option entitles the holder to trade.
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A stock option program gives, for example, employees the right to buy shares in the future.
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