Lets assume you buy a call (right to buy) 100 shares of Xyz company at an agreed price (strike price) on an agreed date (expiration date) at say $40 per share and you pay $5 for the option.
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Calls And Puts Call options when bought allow you to buy an asset at a fixed price (strike price) on or before a specific exercise date.
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A Put options is the reverse of the call option.
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Which is where we get the term Random Walk.
Options are frequently used in real estate deals.