Abstract
A financial option gives the owner the right to buy (in the case of a call option) or to sell (in the case of a put option) an asset at a specified price. This right, in the case of an American option, can be exercised at any time over a specified period. (A European option can be exercised only at a specific date.) Exchange-traded options are available on a large variety of individual securities, as well as on stock indexes, dollardenominated foreign currencies and futures contracts.
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