<p>The Chicago Board Options Exchange (CBOE) is the oldest and largest options exchange in the United States, founded in 1973. It specializes in the trading of options contracts, which are financial instruments derived from underlying assets like stocks, indices, or commodities.</p>

<h2>How It Works</h2>
<p>The CBOE facilitates the trading of options contracts, which give buyers the right, but not the obligation, to buy (call) or sell (put) an underlying asset at a specified price (strike price) on or before a certain date (expiration date).</p>
<ul>
  <li>Traders can buy or sell options contracts through CBOE member firms.</li>
  <li>CBOE offers a range of options on various underlying assets, including single stock options, index options, and options on exchange-traded funds (ETFs).</li>
  <li>The exchange provides real-time market data and risk management tools to help traders make informed decisions.</li>
</ul>

<h2>Why It Matters</h2>
<p>The CBOE plays a significant role in the global financial markets due to its influence on options trading. Its products help investors manage risk and generate returns in various market conditions. For instance, during the 2008 financial crisis, options trading on the CBOE allowed investors to hedge their portfolios against market downturns, demonstrating the practical relevance of the exchange's offerings.</p>