Today, stock markets are considered the pulse of the global economy. However, even minor disruptions can lead to turmoil in these markets and result in the movement of vast amounts of money and credit. Therefore, the use of various financial instruments to reduce and manage risk can play a crucial role in enhancing the efficiency of capital markets. One of the most important financial instruments for risk reduction and boosting capital markets is "options." Options were first officially and systematically used in the Chicago Stock Exchange and later adopted by most major and advanced exchanges worldwide. Given the legal and jurisprudential feasibility of these instruments within the framework of option contracts, examining the present contract is of particular importance. Although clarifying the legal nature of option contracts alleviates some concerns about their illegitimacy and thus their invalidity, it is not sufficient on its own for justification. Accordingly, this paper not only elucidates the legal nature of the mentioned contract but also critiques the viewpoints of those who argue for its invalidity, such as the belief that it is akin to gambling. Ultimately, we conclude that the contract is legitimate. Furthermore, we examine options within common law and find that, in English and American law, option contracts are viewed as conditional contracts and irrevocable offers. Options function as irrevocable offers based on the consent of both parties and become binding once accepted by one of the parties within the specified timeframe.
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Abdolsamadi,R. and Kaviar,H. (2024). Jurisprudential and Legal Debates on Options Contracts. Judgment, 23(116), 72-86. doi: 10.22034/judg.2024.2037970.1316
MLA
Abdolsamadi,R. , and Kaviar,H. . "Jurisprudential and Legal Debates on Options Contracts", Judgment, 23, 116, 2024, 72-86. doi: 10.22034/judg.2024.2037970.1316
HARVARD
Abdolsamadi R., Kaviar H. (2024). 'Jurisprudential and Legal Debates on Options Contracts', Judgment, 23(116), pp. 72-86. doi: 10.22034/judg.2024.2037970.1316
CHICAGO
R. Abdolsamadi and H. Kaviar, "Jurisprudential and Legal Debates on Options Contracts," Judgment, 23 116 (2024): 72-86, doi: 10.22034/judg.2024.2037970.1316
VANCOUVER
Abdolsamadi R., Kaviar H. Jurisprudential and Legal Debates on Options Contracts. Judgment, 2024; 23(116): 72-86. doi: 10.22034/judg.2024.2037970.1316
