Question

Define option contract. Explain the concept of risk management with Derivatives.

Answer 1

Hey mate!

I am here with your answer!

An options contract is an agreement between a buyer and seller that gives the purchaser of the option the right to buy or sell a particular asset at a later date at an agreed upon price. Options contracts are often used in securities, commodities, and real estate transactions.

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Answer 2

HEY MATE...

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Option contract is basically an agreement between a buyer and seller it depends upon the factors such as commodities security.