Why do put and call options have expiration dates? Is there a market for options that have passed their expiration dates?
Answer to relevant QuestionsBriefly 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? Alcan stock recently closed at $52.51. Assume that you write a covered call on Alcan by writing one September call with a strike price of $55, and buying 100 shares of stock at the market price. The option premium that you ...Gillette is trading at $31.11. Call options with a strike price of $35 are priced at $0.30. What is the intrinsic value of the option, and what is the time value? A little more than 10 months ago, Luke Weaver, a mortgage banker in Phoenix, bought 300 shares of stock at $40 per share. Since then, the price of the stock has risen to $75 per share. It is now near the end of the year, and ...List and briefly define the 5 essential parts of a commodities contract. Which parts have a direct bearing on the price behavior of the contract?
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