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Thales speculation on the harvest allowed for him to purchase rights to the presses. He could then exercise his rights if his speculations on the harvest were correct.
An option is a contract giving the buyer the right to buy or sell an asset at a specific price for a limited time. An option is a contract between the buyer and seller with defined parameters. The asset that is bought or sold is called the underlying. This underlying asset could be a commodity, a futures contract, or stock. The seller gives the buyer the rights for a sum of money called a premium. The price that the underlying right is bought or sold at is called the exercise price...
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