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CG12301 | Options: put option or call option

From HM Revenue & Customs · Capital Gains Manual

The terms put option and call option are frequently used

  • A PUT OPTION is an option binding the grantor to buy.

  • A CALL OPTION is an option binding the grantor to sell.

Thus if the option is exercised the asset is

  • put into the hands of the grantor - a put option, or

  • called for from the grantor - a call option.

If the option is not exercised within the time (or on the day) specified, the option expires.