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Option
Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date. Investors, not companies, issue options. Buyers of call_option bet that a stock will be worth more than the price set by the option (the strike price), plus the price they pay for the option itself. Buyers of put_option bet that the stock's price will drop below the price set by the option. An option is part of a class of securities called derivative_security, which means these securities derive their value from the worth of an underlying investment.
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