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Options

An option give the holder the right but not the obligation to execute a trade at a set price within a set time frame. A call option grants the holder the right to purchase a set quantity of an asset at a set price within the defined time period. A put option grants the holder the right to sell a set quantity of an asset at a set price within the defined time period. Options are traded on options markets. Options exist on stocks, bonds, commodities, indices of stocks and futures.

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