What are Stock Index Options ?


The Stock Index Options are options where the underlying asset is a Stock Index e.g. Options on "Sensex" and Options on Nifty.
Index Options were first introduced by Chicago Board of Options Exchange (CBOE) in 1983 on its Index "S&P 100".


As opposed to options on Individual stocks, index options give an investor the right to buy or sell the value of an index which represents group of stocks.
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