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What are Options?😀

What are Options?😀

Options are contracts where a buyer buys the right to buy or sell a particular asset within a particular time and at a particular price. It is an option and not a legal obligation.

Investors💪 use this as it is a good way to make money if prices rise or fall for a specific asset.

Options have three key features:

Strike Price—price at which the option is to be bought or sold (also known as “Exercise Price”)✔

Premium—the price the option buyer pays to the option seller to acquire the option✔

Expiration Date—the date by which the option must be bought or sold or it will become worthless✔

Types of options💰

Call Options: the right to buy an asset at a predetermined fixed price.

Put Options: the right to sell an asset at a predetermined fixed price.

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What are Options?😀
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