Options as Financial Instruments: Options allow unlimited profit potential while capping losses to the premium paid. The buyer gains a right, but not an obligation, to buy (call) or sell (put) the underlying asset at a specified price.
Call and Put Options: A call option gives the buyer the right to buy; a put option gives the right to sell.
Strike Price: The fixed price at which the underlying can be bought or sold.
MODELEXAM® 
www.realsoftinfoplan.com