3rd December 2019

investopedia
11

What is buying an option?

Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date.

How many options can I buy?

Call options give buyers the right to buy a set amount of an underlying instrument (usually 100 shares per contract) at a specified price (the strike price) within a set time (prior to expiration).
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