Chapter 3: Types of options
In this chapter we will explore in more detail the various types of options that are available and how they work. We have included two summary tables at the start of this chapter for you to refer to as you read through the detail, which will give you an overall picture of how the options work.
Towards the end of the chapter we will introduce some different types of options that are available, including company issued options and index options and how they vary from exchange traded stock options.
Summary of call options and put options
The two main types of options are call options and put options. A call option is the right to buy 100 shares of an underlying stock and a put option is the right to sell 100 shares ...
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