ABSTRACT
Call options provide the right to buy shares at a particular price (the strike price), and put options give the right to sell at a strike price. Someone who is at risk from a price change can use options to offset that risk.A call option can be seen as a means of establishing an upper limit to the purchase price of a share (if the market price exceeds the strike price, then the option may be exercised in order to buy at the strike price).A put option provides a minimum selling price (exercise of the right to sell, at the strike price,might occur in the event of the market price being below the strike price).
