The strike price may be set by reference to the spot price (market price) of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium.The seller has the corresponding obligation to fulfill the transaction – to sell or buy – if the buyer (owner) "exercises" the option.An option that conveys to the owner the right to buy at a specific price is referred to as a call; an option that conveys the right of the owner to sell at a specific price is referred to as a put.

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The seller may grant an option to a buyer as part of another transaction, such as a share issue or as part of an employee incentive scheme, otherwise a buyer would pay a premium to the seller for the option.

A call option would normally be exercised only when the strike price is below the market value of the underlying asset, while a put option would normally be exercised only when the strike price is above the market value.

When an option is exercised, the cost to the buyer of the asset acquired is the strike price plus the premium, if any.

20, 2007 (PRIME NEWSWIRE) -- The law firm of Stull, Stull & Brody announces that a shareholder lawsuit has been commenced against certain members of the board of directors and certain executive officers of Altera Corp. The complaint alleges that certain current and prior officers and directors manipulated the prices of executive and director stock option grants (a.k.a. Such practice of awarding stock options to executives and directors at artificially low prices is alleged to violate the company's internal documents (such as the company's stock option plan), as well as state laws governing officer and director fiduciary duties and/or federal laws governing securities and taxation.

In addition, the practice results in lower payments to companies, results in those companies under-reporting compensation expenses, and permits directors, officers and/or executives to unjustifiably reap millions and billions of dollars which should be disgorged and returned to the corporate coffers thereby contributing to the financial health of the company.

Stull, Stull & Brody is investigating over fifty companies that either received a letter of inquiry from the Securities and Exchange Commission ("SEC"), have been contacted by U. Attorney's Offices, are being investigated by the Justice Department and/or the Internal Revenue Service, have announced internal investigations and/or have otherwise been noted (in media or public reports), concerning their stock-option grant practices.These companies include: Stull, Stull & Brody has litigated many shareholder lawsuits over the past 30 years and has obtained court approval of substantial settlements on numerous occasions.Stull, Stull & Brody maintains offices in both New York and Los Angeles.If you currently hold shares of any of the above-referenced companies and wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq.at Stull, Stull & Brody by e-mail at [email protected], by calling toll-free 1-800-337-4983, or by fax at 212-490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. More information on this and other class actions can be found on the Class Action Newsline at In finance, an option is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on a specified date, depending on the form of the option.