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Exchange Traded Options

What are Exchange Traded Options

An exchange traded option is an option that has been written by, or the performance guaranteed by, a member of a recognized exchange that permits the holder of the option to sell (put option) or purchase (call option) from the writer of the option a specified amount of securities at a specified price, on or before a specified date or the occurrence of a specified event.

The securities that are the subject of the option must be listed and posted for trading on a recognized exchange.