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Related Definitions

Index Options

Updated on August 21, 2024

Index options are those options where the underlying asset is an index. An index option gives the buyer of the index the right but not the obligation to buy or sell the underlying index at the exercise price on or prior to the expiration date of the option.

There are two types of options, call and put used by investors, traders and speculators to make profit based on the general direction of an underlying index

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