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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Options Contract  

Definition 1.

One options contract represents one hundred shares in the underlying stock. The quoted price of an option is per share.
 

Definition 2.

A contract that, in exchange for the option price, gives the option buyer the right, but not the obligation, to buy (or sell) a financial asset at the exercise price from (or to) the option seller within a specified time period, or on a specified date (expiration date).
 
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