Sal Khan
Options allow investors and speculators to hedge downside (or upside). It allows them to trade on a belief that prices will change a lot--just not clear about direction. It allows them to benefit in any market (with leverage) if they speculate correctly. Source: Khan Academy (www.khanacademy.org), used under the Creative Commons Attribution-NonCommercial-ShareAlike (CC BY-NC-SA) license. All Khan Academy content is available for free at www.khanacademy.org. Khan Academy does not endorse the World Public Library.
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