Options Financial Instruments
Options financial instruments are contracts that give the holder the right, but not the obligation, to buy or sell a specific asset at a predetermined price within a specified time frame. They are commonly used as a form of financial derivatives to hedge against risk or speculate on market movements. There are two main types of options: call options, which give the holder the right to buy an asset, and put options, which give the holder the right to sell an asset. Options can be traded on various underlying assets such as stocks, commodities, and currencies.