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What Are Options? Types, Spreads, Example, and Risk Metrics Options are financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date Call options and put options form
OPTION Definition Meaning - Dictionary. com something that may be or is chosen; choice the act of choosing an item of equipment or a feature that may be chosen as an addition to or replacement for standard equipment and features a telephoto lens option for a camera stock option
What are options, and how do they work? | Fidelity 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 " They derive their value from the stock or ETF that the contract refers to
OPTION definition and meaning | Collins English Dictionary An option is an agreement or contract that gives someone the right to buy or sell a property or shares at a future date Each bank has granted the other an option on 19 9 percent of its shares Under the program, he still holds options to buy 42,000 shares at the same low rate
Option Definition, Meaning Example - InvestingAnswers What is an Option? An option is a financial contract that gives an investor the right, but not the obligation, to either buy or sell an asset at a pre-determined price (known as the strike price) by a specified date (known as the expiration date) How Does an Option Work?
Option - definition of option by The Free Dictionary Define option option synonyms, option pronunciation, option translation, English dictionary definition of option n 1 The act of choosing; choice: Her option was to quit school and start her own business 2 The power or freedom to choose: We have the option of
Introduction to Options | Charles Schwab 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 expiration
What Are Options? How Do They Work? – Forbes Advisor Options are a type of derivative, which means they derive their value from an underlying asset This underlying asset can be a stock, a commodity, a currency or a bond To help you understand the