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QWhat is the term for a contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified period?

ID: #10902 Definitions 156 views
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  • A Option ✔ ✖
  • B Future ✔ ✖
  • C Swap ✔ ✖
  • D Derivative ✔ ✖
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An option is a contract that gives the holder the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a predetermined price (strike price) within a specified period. Options are commonly used for hedging, speculation, and leveraging investment opportunities.

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