Options Contract

Options Contract An options contract confers the right to buy or sell a specific quantity or a number of a particular asset at a specific price at or before some date in the future. It confers on the buyer the right but not the obligation to honour the contract. The obligation rests only with the seller or the writer of the contract. If the buyer chooses not to exercise his option, the maximum loss he suffers is the premium he has paid to the write of the contract. See FUTURES CONTRACT and also see OPTION

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