OptionBased Derivatives
Option-based derivatives consist of financial instruments whose value is derived from the price of an underlying asset, such as stocks, bonds, commodities, or currencies. These derivatives give the holder the right, but not the obligation, to buy or sell the underlying asset at a specified price within a specific time frame. Examples of option-based derivatives include options, warrants, and convertible securities. These instruments are commonly used by investors and traders to hedge risk, speculate on price movements, or generate income.