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GLOSSARY

Option

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Term Definition
Option

An option is a standardized tradable contract that gives the owner the right to buy or sell a particular underlying asset at a specified date in the future at a pre-determined price. An American style option gives the buyer the right to exercise the option at any time before its expiry whereas European style options can be exercised only on the expiry date. See also Call Option, Put Option and Option Premium.

Author: WFE
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