Options in relation to the stock market involve a tentative contract to purchase or sell an asset. This contract is written to give a buyer the ability to purchase shares at an agreed upon rate as long as the buy is made before a specific date. The buyer is under no obligation to carry the contract forward.

Options can be a gamble, but they can also pay off. If an agreed upon price is lower than the going value at the time of purchase, the buyer wins. .

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