An option on a stock exchange or futures exchange which can itself be bought and sold.
- In addition, you can use traded options and financial futures to ‘short’ equity markets if you think they will fall.
- If you use publicly traded options to lower the risk of owning stocks, don't assume that any dividend you collect will qualify for the lower 15% maximum tax rate on dividends.
- However, publicly traded options on gold bullion don't exist.
Definition of traded option in:
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