13/12/2021 Financial & Legal Services
An option can be defined as “a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset (a stock or index) at a specific price on or before a certain date.”
It is a derivative, which gets its value from an underlying asset.
Stock options get their value from stocks while index options derive from the index or equity.
Options have expiration dates unlike stocks and there are no fixed numbers.
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