What are LEAPS? Why would an investor want to use a LEAPS option rather than a regular listed option?
Answer to relevant QuestionsWhat are listed options, and how do they differ from conventional options? Briefly explain how you would make money on (a) a call option and (b) a put option. Do you have to exercise the option to capture the profit? P. F. Chang holds a well-diversified portfolio of high-quality, large-cap stocks. The current value of Chang’s portfolio is $735,000, but he is concerned that the market is heading for a big fall (perhaps as much as 20%) ...You believe that oil prices will be rising more than expected and that rising prices will result in lower earnings for industrial companies that use a lot of petroleum-related products in their operations. You also believe ...Discuss how stock-index futures can be used for speculation and for hedging. What advantages are there to speculating with stock-index futures rather than specific issues of common stock?
Post your question