Options Contract

A contract that gives you as a buyer the right, but not the obligation, to sell an underlying asset at a specified price and on a specific date.

An option contract gives you the right but not the obligation to buy or sell an underlying asset, at a specified price on or before a specific date in future. You need to pay a premium to buy an Options contract. If the trade is in your favor, you have the right to exercise the agreement and ignore in case the trade is not favorable to you.

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