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Everyday Power - What is an option?
Year-end rally or volatility ahead? Today's video dives into options. Let's talk about what this tool means for you and your future portfolioes.
An option is a contract that gives its holder the right to buy or sell a specific security on a specific time at a specific price.
There are five basic factors of a standard option: underlying instrument, strike price, expiration date, contract type and premium.
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