between two parties, where one party

 

Call options

A call option contract is timesofamerica.info an agreement between two parties, where one party will have the right to purchase shares from another party at a specific price (also known as the strike price) on or before a given date.

If you had bought $1,000 worth of gold call contracts for HK$32 per ounce on January 1 of 2010, it means that if timevinger.org the gold price increased by more than 10% within this year, you can sell your call contract at HK$36 each or let it expire for nothing.

Put Options

A put option contract is just tincona.com the opposite of a call option; it gives you the right to sell 100 units of a specified security at a specific price on or before a given date.