What are Options? | What are Options? |
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Option is a
right not an obligation to buy or sell a stock (Share) at a specified price on
or before a specified date.
Types of Options
Contract:
Call Contract: A
call contract gives the buyer right but not the obligation to buy the stock at
a specific price for a specified time and Vice versa.
Put contract: A
put contract gives the buyer right but not the obligation to sell the stock at
a specific price for a specified time and Vice Versa.
Difference
between Futures & Options
A Future
contract binds the buyer to purchase and seller to sell a lot stock or
commodity at future expiry date at the price fixed.
Option is a
right not an obligation to buy or sell a stock at a specified price on or
before a specified date.
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