ECONOMICS

Detailed explanation-1: -Choice is an opportunity to select something or to choose from an option; Options are spread before us to choose from; Options are the things and choices are our decision; Options are fixed and choices aren’t.

Detailed explanation-2: -For speculators, options can offer lower-cost ways to go long or short the market with limited downside risk. Options also give traders and investors more flexible and complex strategies such as spread and combinations that can be potentially profitable under any market scenario.

Detailed explanation-3: -This is important because in generating options for action, decision-makers do not attempt to generate as much or as crazy options as possible: they try to generate those options that enable them to make good decisions. Therefore, an important question is how different factors affect option quality.