What's the difference between a put option and a call option?

Options are contracts that allow an investor to control how they buy and sell securities.
Alyssa Powell/Insider
Call and put options give you the right to buy and sell shares of stock at a set price during a specific period of time.
Both options require that you pay a nonrefundable premium, which you risk losing if you don't exercise the option.
Both types of options come with the potential to earn and lose money on your investments.
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