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Answer / me
A contract that gives the holder the right to buy („Call
Option‟) or sell („Put
Option‟) a certain number of shares of a company at a
specified price known as the
„Striking Price‟ or „Exercise Price‟.
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Answer / madhulika2011
A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date).
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