What are the main investment attractions of put and call options? What are the risks?
Answer to relevant QuestionsWhat is a stock option? What is the difference between a stock option and a derivative security? Describe a derivative security and give several examples. Name at least 4 variables that affect the price behavior of listed options, and briefly explain how each affects prices. How important are fundamental (intrinsic) value and time value to in-the-money options? To ...Rick owns stock in a retailer that he believes is highly undervalued. Rick expects that the stock will increase in value nicely over the long term. He is concerned, however, that the entire retail industry may fall out of ...Dorothy Santosuosso does a lot of investing in the stock market and is a frequent user of stock-index options. She is convinced that the market is about to undergo a broad retreat and has decided to buy a put option on the ...Discuss the difference between a cash market and a futures market.
Post your question