Optsiooni

An option, often referred to as an "optsiooni" in financial contexts, is a contract that gives the buyer the right, but not the obligation, to either buy or sell an underlying asset at a specified price on or before a certain date. The seller of the option is obligated to fulfill the contract if the buyer chooses to exercise their right.

There are two main types of options: call options and put options. A call option gives the buyer the right to buy the underlying asset. This is typically purchased if the buyer anticipates that the price of the asset will increase. A put option, on the other hand, gives the buyer the right to sell the underlying asset. This is usually bought if the buyer expects the price of the asset to fall.

The specified price at which the underlying asset can be bought or sold is known as the strike price. The date on which the option expires is called the expiration date. The price paid for an option contract is called the premium. This premium is paid by the buyer to the seller for the rights granted by the option.

Options are used for a variety of purposes, including speculation, hedging against potential losses, and generating income. They are complex financial instruments and involve significant risk, particularly for those who sell options without owning the underlying asset. Trading options requires a thorough understanding of the markets and the mechanics of option contracts.