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- Call options and put options are two types of contracts that give the holder the right to buy or sell a stock at a certain price in the future12. Call options are used when the investor expects the stock price to rise, while put options are used when the investor expects the stock price to fall2. The holder of the option can exercise the right, but is not obligated to do so12.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.
There are two primary types of options: call options and put options. 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…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.
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