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IBPS Exam > Learn IBPS Exam Coaching > Define Option Contracts?
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Define Option Contracts?

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An options contract is an agreement between a buyer and seller that gives the purchaser of the option the right to buy or sell a particular asset at a later date at an agreed upon price. Options contracts are often used in securities, commodities, and real estate transactions.
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This is an agreement between the buyer and seller which gives the right to sell the product in future with a cost of the buyers mind depending upon market needs.
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