An option contract is a financial derivative that grants the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified timeframe. This option contract definition is crucial in hedging and speculative strategies, allowing investors to manage risk and leverage potential gains. Option contracts are commonly used in corporate finance to optimize investment portfolios and manage financial exposure.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
