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Dec 30, 2025 · An option is a type of financial instrument that's tied to an underlying security. Options give their buyers the right, but not the obligation, to purchase or sell the asset at a specified. Sep 30, 2024 · An option is a legal contract that gives you the right to buy or sell an asset (think: a stock or ETF) at a specific price by a specific time. They are known in the financial world as "derivatives." In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or. Aug 21, 2024 · An option is a contract which gives the holder the right to buy or sell an asset at a set price within a specific timeframe. An option is a contract that represents the right to buy or sell a financial product at an agreed-upon price for a specific period of time. You can typically buy and sell an options contract at any time before.
An option is a contract to buy or sell a specific financial product known as the option's underlying instrument or underlying interest. OPTION definition: the power or right of choosing. See examples of option used in a sentence. What is an option? An option is a contract that gives the buyer the right (but not the obligation) to buy or sell an underlying asset at an agreed-upon price on or before an agreed-upon date. A call option, or the right to buy an asset at a set price, is in the money if the current price of the asset is higher than that agreed-on price. A put option, or the right to sell an asset at a set price, is in the.
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