3 ms·
> The creation of ‘option markets’ means that you don’t have to go to the trouble of buying a stock that you’re going to be selling soon anyway. You can just pr
by smabie 6y ago
> The creation of ‘option markets’ means that you don’t have to go to the trouble of buying a stock that you’re going to be selling soon anyway. You can just promise to buy it, and then sell it at a price and date specified by the option contract.
Options, like their name implies, aren't a promise to do anything, they provide the right but not obligation to buy or sell at a certain price.