26.3 Lessons learnt


  • Options are contracts or agreements between a buyer and seller on the financial market
  • An option contract gives you the right to buy or sell financial instruments (for example shares) for a fixed price for a specific duration 
  • When you buy an option you pay a certain premium for the right to buy or sell at a specific price  
  • There are two sorts of options in the market, call options and put options.