Options are financial contracts which give the buyer of the options contract the right, but not the obligation, to buy/sell a financial instrument at a predefined price on/until a set date from the contract seller, who is obligated to sell/buy the financial instrument at said price if the option is exercised.
Key learning objectives:
Know the different types of options
Understand how options are priced and valued
Recall what Strategies, Straddles, Strangles and Collars are