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Stock options come in two basic forms:
- Call options afford the holder the right, but not the obligation, to buy the asset at a stated price within a specific time frame.
- Put options afford the holder the right, but not the obligation, to sell the asset at a stated price within a specific time frame.
www.investopedia.com/terms/s/stockoption.asp- People also ask
WebMay 24, 2024 · A call option is a contract that gives the buyer the right to buy an asset at a specified price within a certain period. Learn how to use call options for speculation, income, or tax management, and see …
WebMay 16, 2024 · A put option is a contract that gives the buyer the right to sell an underlying asset at a specified price and time. Learn how put options work, how they differ from call options, and how to trade them for …
WebMar 17, 2024 · Key Takeaways. A call option gives a trader the right to buy the asset, while a put option gives traders the right to sell the underlying asset. Traders would sell a put option if they...
WebMar 6, 2024 · A call option allows that investor to buy a security at a predetermined price. It’s simple to buy call or put options, as options are available on nearly every major exchange...
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