Options Contracts
Options Contracts refer to financial instruments that give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a certain timeframe. These contracts are commonly used in the financial markets as a way to hedge risk, speculate on price movements, or generate income. There are two types of options contracts: call options, which give the holder the right to buy the underlying asset, and put options, which give the holder the right to sell the underlying asset. Options contracts are traded on organized exchanges and over-the-counter markets.