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Call and Put Options

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What are call and put options? What is the premium and and what is the strike price? How are American and European options different? How do options differ from futures?

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The expert determines what are call and put options.

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When used in relation to financial instruments, options are generally defined as a "contract between two parties in which one party has the right but not the obligation to do something, usually to buy or sell some underlying asset". These assets derive their value from some other asset, so they are called derivative assets. The option buyer acquires a right, while the option seller takes on an obligation. Call options are ...

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