What is an option contract

What is an option contract
An option contract is a contract between a buyer and a seller. The option is connected to something, such as a listed stock, an exchange index, futures contracts, or real estate. Options have one feature that sets them apart from all other existing financial instruments: the holder of an option has the right, but not the obligation, to buy or sell an underlying asset at a predetermined price during a specified period. Thus, the option holder will exercise his or ......