LONDON/AMSTERDAM. Share Option. black. Fold. Small format. Text in Dutch. The holder of this certificate acknowledges having bought on April 1, 1740 a £2000 share in the Bank of England at 145,25% of the nominal value. On May 15, he will have to pay this amount (making abstract of any dividends given in-between) to the seller. In case the stock price is above £2905, our investor will, upon direct sale of his share, have made a profit, in the other case, he will have endured a loss. In other words, this is a classic "put option contract". While options on shares are generally regarded as an advanced financial instrument from the late 20th century, this document confirms that on the 18th century financial market of Amsterdam, options on international stocks were already traded. Hence, we find this piece of great historic interest. Rarity 10.
Themes: BANK & FINANCE, BEFORE 1800
BELGIUM, GREAT BRITAIN, NETHERLANDS
Date: 1 April 1730
Startprice: € 1600