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What are options forwards?

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posted Jul 10 by Mukul Chag

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1 Answer

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An option contract is a contract which gives one party the right to buy or sell the underlying asset on a future date at a pre-determined price. The other party has the obligation to sell/buy the underlying asset at this pre-determined price (called the strike price). The option which gives the right to buy is called the CALL option while the option which gives the right to sell is called the PUT option.

answer Jul 11 by Sagar Sharma
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