What Is Options?

In quantitative finance, Options are financial contracts that give the buyer the right, but not the obligation, to buy (in the case of a call option) or sell (in the case of a put option) an underlying asset at a specified price (strike price) on or before a certain date (expiration date). The seller of the option, in return, receives a premium from the buyer.

Options are versatile financial instruments that can be used for various purposes, such as hedging, speculation, or income generation. They allow market participants to manage their risk exposure and take advantage of potential profit opportunities.

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