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What is the definition of an option？

幫考網校2020-10-13 16:27:40
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An option is a financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and within a specified time period. The underlying asset could be a stock, commodity, currency, or any other financial instrument. Options are commonly used as a hedging tool or for speculative purposes in financial markets.
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