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Option Definition
Tuesday, October 9, 4:53 PM ET

An option is a financial derivative reprsenting a contract sold by the option writer to the option holder granding them the right to buy or sell a security or asset at an agreed up time for an agreed upon price, known as the strike price. A call option gives the option to buy at a certain price, while a put option gives the option to sell at a certain price.

For MarketNewsVideo.com, I'm Sayoko Murase.

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