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What is an Option?

Posted By On 2/18/2008 11:24:00 PM Under
1. Option is one of the type of the derivatives contract which confers the right on the buyer but definitely not the obligation to buy or sell a specified quantity of underlying asset at an agreed price and the same can be undertaken on or before the specified future date.

2. One is able to buy an option by paying a price which is called as the premium. If one is a new investor and wants to test the derivatives market than options is a better choice than the derivatives.



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