The options industry is growing, and over the next few years more institutional investors will seek to invest in them to diversify portfolios and lower risk.

An option is the right for a buyer to buy or sell an asset at a set price on or before a given date. Options are types of derivatives, which means they obtain their worth from the value of an underlying investment. An option that gives the buyer a right to buy is a call option. An option that gives a right to sell is a put option.

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