Question: How do I identify the risks associated with purchasing an option and the factors affecting an options time premium? How do I differentiate speculative from

How do I identify the risks associated with purchasing an option and the factors affecting an option’s time premium? How do I differentiate speculative from risk management strategies using options?

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Remember to calculate risk we divide our net profit by the price of our maximum risk using the XYZ example if our stock went up to 29 per share we sho... View full answer

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