Question

what is the use of index option​

Answer 1

Answer:

An index option is a financial derivative that gives the holder the right (but not the obligation) to buy or sell the value of an underlying index, such as the S&P 500 index, at the stated exercise price. No actual stocks are bought or sold.

Answer 2

Answer:

The answer is

Explanation:

Index options are flexible derivatives and can be used for hedging a stock portfolio consisting of different individual stock for speculation on the future direction of the index.

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