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- Call and put options are contracts that provide rights to the buyer12345.
- Call options give the holder of the contract the right to purchase the underlying security1245.
- Put options give the holder the right to sell shares of the underlying security1245.
- Both can be used to let investors profit from movements in a stock’s price1.
- When you buy a call, you make a small payment, or the “premium,” in exchange for the right to purchase the underlying stock at a set price, or the “strike price,” on or before a specified date, or the “expiration"2.
- Buying a put is similar, except it gives you the right to sell the underlying stock at the strike price on or before expiration2.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Call options give the holder of the contract the right to purchase the underlying security, while put options give the holder the right to sell shares of the underlying security. Both can be used to let investors profit from movements in a stock’s price.www.thebalancemoney.com/call-and-put-options-d…When you buy a call, you make a small payment, or the “premium,” in exchange for the right to purchase the underlying stock at a set price, or the “strike price,” on or before a specified date, or the “expiration." Buying a put is similar, except it gives you the right to sell the underlying stock at the strike price on or before expiration.www.nerdwallet.com/article/investing/call-vs-putCall and put options are a typical derivative or contract that provides rights to the buyer. However, there’s no obligation to purchase or sell the underlying asset within a specific date or at a specified price. Options come in two classified distinctions - call option and put option.www.5paisa.com/stock-market-guide/derivatives-tr…A call option gives the holder the right, but not the obligation, to buy a stock at a certain price in the future. When an investor buys a call, she expects the value of the underlying asset to go up. A put option gives the holder the right, but not the obligation, to sell a stock at a certain price in the future.www.investopedia.com/terms/p/put.aspA call option is the right to buy a stock at a specific price by an expiration date, and a put option is the right to sell a stock at a specific price by an expiration date.www.fool.com/investing/how-to-invest/stocks/call-o… - People also ask
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