True or False 1. When an option is in the money the person who owns the option
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Question:
True or False
1. When an option is "in the money" the person who owns the option can sell it for a profit or a loss rather than exercising it but when it is "out of the money" the only thing a person can do is wait to see if it goes back in the money or just walk away from it.
2. Except for expiration day it is always better to sell an option instead of exercising it.
3. Empirical research on the options markets indicates that speculators who buy options or sell the ones that they have bought make greater profits than speculators (option writers) who create options and sell them.
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