Back To Define:by

Define: Options Contracts

Options contracts are contracts that give their holder the right but not the obligation to buy or sell a specific asset at a specific price before expiration.

Options contracts are not only found in the stock market but also in your everyday life. Examples of everyday options contracts include insurance, option to purchase and your employee stock options. Any contracts that gives you rights that you could exercise at will are options contracts.

Read the full tutorial on Options Contracts.