An option is a contract between two parties in which the buyer obtains the right, but not the obligation, to buy or sell an underlying asset at a predetermined price on a set date in the future.
Option contracts can be classified as American or European with respect to their expiration type.
An American-style option gives the buyer the right, but not the obligation, to buy or sell the underlying asset at a set price at any time before or on the expiration date of the option contract.
A European-style option can only be exercised on the expiration date. Options are complex products with high risk and are not suitable for all investors. You can lose your entire invested capital.
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