Options Law and Legal Definition


Traders use options to speculate, which is a relatively risky practice, while hedgers use options to reduce the risk of holding ane asset. In terms of speculation, option buyers and writers have conflicting views regarThe examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject. Legal contract between a potential buyer and the seller of a property whereby in exchange for a fee Options Law and Legal Definition seller gives the potential buyer, up to a certain date, the first chance to buy that property.

URL to this page: htt4. (Stock Exchange) commerce the right to buy ( call option) or sell ( put option) a fixed quantity of a commodity, security, foreign exchange, etc, at a fixed price at a specified date in the future. See also traded option. It is an essential resource.




Options Legal Definition Law and

Options Law and Legal Definition