Glossary

Options

Options are derivatives contracts between two parties that gives the buyer the option (but not the obligation) to buy (‘call’) or sell (‘put’) an asset at an agreed price at a later date. They are traded both on exchanges and over-the-counter

The majority of Certified Emissions Reductions are first sold as options which, on current projections, makes it likely that the overall value of the carbon offset market is likely to be considerably exaggerated.

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