Options allow their holders to sell or to buy another security during a stated period of time at a specified price.

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This is a true statement. Options give their holders the right, but not the obligation, to buy or sell another security (usually a stock) at a specified price, known as the strike price, during a specified time period, known as the expiration date. Options can be used for a variety of strategies, including hedging, speculation, and generating income.

Options Allow Their Holders to Sell or to Buy Another