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Equity Options

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Description

Options contracts where the underlying asset is equity, like stocks.

Equity options are financial derivatives that grant the right, but not the obligation, to buy or sell shares of stock at a set price before a certain date. These options can be used for speculation, where investors bet on stock price movements, or for hedging, protecting against adverse price changes in equity holdings. Understanding equity options is vital for sophisticated trading strategies involving risk management and leverage.

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