Explain the following terms used with puts and calls: a. Strike price b. Naked option c. Premium
Question:
Explain the following terms used with puts and calls:
a. Strike price
b. Naked option
c. Premium
d. Out-of-the-money option
Strike PriceIn finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.
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