Option
A contract giving the buyer the right, but not the obligation, to buy (call) or sell (put) an asset at a fixed price by a fixed date.
Calls gain value as the underlying rises above the strike; puts gain as it falls below. Value has two parts: intrinsic value (how far in-the-money) and time value (the chance of moving further in-the-money before expiry), which decays toward zero as expiration approaches.
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