Monday, August 22, 2005

What is an Options Contract?

An options contract lets you, the owner, purchase and sell an asset at a fixed price until a specific deadline date. An option to purchase an asset is a "call" and an option to sell an asset is a "put". The risk factor can be quite high depending on how the investor uses options. In order to be successful in , you must be correct in timing as well as on the valuations of the underlying asset.