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survivals     As early as 1000 B.C., we can see an early consecrate of wefts. According to the Fundamentals of Corporate finance, Thales the Philosopher knew from the stars that there would be a colossal olive harvest. Thales did not have much money, but was able to corrupt options for the use of olive presses. When the harvest arrived he was able to rent the presses at a substantial profit. Thales speculation on the harvest allowed for him to purchase rights to the presses. He could then effect his rights if his speculations on the harvest were correct.      An option is a pick out giving the demoraliseer the right to buy or administer an plus at a specific charge for a limited time. An option is a contract between the buyer and seller with defined parameters. The plus that is bought or sold is called the primal. This underlying asset could be a commodity, a futures contract, or stock. The seller gives the buyer the rights for a sum of money called a bounty. The price that the underlying right is bought or sold at is called the suffice price. The two types of Options are Calls and Puts.      When an option gives the buyer the right to purchase underlying assets from a writer is called a call option. The call option is the roughly straightforward strategy for capitalizing on an anticipated increase in the price of the underlying asset. The investor that buys a call option is utter to be in a long call position. An investor that believes the price of an underlying asset allow for decline or remain the same, can if his speculations are correct, realize income by selling a call option. The seller is said to be in a short call position.      When the purchaser of an option has the right to sell the underlying asset the option is called a retch option. With a typeset option you can insure an asset by locking in a selling price. If the price of the underlying falls y ou can exercise your option and sell it at the locked in price. If the price of the underlying asset increases then you would not exercise your right and the only cost incurred is the premium paid for the option. The investor that purchases a put option is said to long put position. The investor that can earn income buy selling a put is said to be in a short put position.      The people that buy ... ... However, if understood they can be very useful. They are excellent tools for hedgerow and lowering risk as well as investments for profit. The option marketplace allows for two types of transactions to be exercised at the same time purchase and selling the options and being able to sell the underlying asset holdings. The Option Clearing Corporation makes sure that these day to day option art runs smoothly. These reason are why options are a good secondary to other security trading.The Wonderful World of Options         &n bsp                              Bibliography1.     Brealey, Myers, Marcus, Fundamentals of Corporate Finance2.     Fischer Robert, Stocks or Options? Programs for profit.3.     Fabozzi Frank, Zarb Frank, Handbook of Financial Markets4.     Stewart Joseph, Dynamic Stock Option traffic 5.     Chicago Board Options exchange- Web site-