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What are options?Options are contracts/agreements between 2 parties, the buyer and seller. The buyer pays the seller a premium to purchase the right to buy or sell shares at an agreed price. The seller accepts the premium and promises the buyer to buy or sell his/her shares at the agreed price. Options are very similar to insurance. The buyer of the insurance pays the insurance seller a premium to purchase the right to claim compensation when a certain event agreed by both parties happen. The seller of the insurance accepts the premium and promise to pay compensation when the event occurs.Where are options traded?Options are available for most stocks listed on the major US exchanges. Each option contract is worth 100 shares. This is only applicable in the US market. Other markets such as H