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How an option holder gains from the volatility of the underlying stock price?
Wiki User
∙ 13y ago
A component of the option price is the implied volatility of the stock.
When the implied volatility rises the price of the option rises slightly.
Read more about VEGA & DELTA of an option.
Wiki User
∙ 13y ago
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What is the difference between a policy holder and a beneficiary?
the person in whose name the policy is issued legally is known as policy holder the person who gains insurance cover is known as beneficiary ,it may be himself or dependents(nominees)
How long do you have to reinvest before you must pay capital gains?
There was an option to reinvest proceeds from the sale of a home into a new home in order to avoid capital gains taxes. That option was repealed in 1997 and replaced by the current $250,000/$500,000 exclusion. There is no other option to avoid capital gains taxes by reinvesting. Perhaps you are thinking of the Section 1031 exchange that lets you trade one income-producing or business property for a similar property. See: http://www.irs.gov/newsroom/article/0,,id=179801,00.html
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Contrary to popular opinion, one of the primary reasons people invest in hedge funds is to take advantage of the small steady gains for the preservation of their capital. Due to the fact that hedge funds can use specific trading techniques unavailable to mutual funds and other investment vehicles, they are able to provide stable returns regardless of market downturn. Used correctly a well run hedge fund should have less volatility than the market in general. Many managers strive for high alpha stray from the low volatility which should be associated with hedge funds, and use riskier strategies which provide higher returns. higher risk and greater volatility.
What is the relationship between a regular call option and binary call option and a gap call option?
Regular call options have limited risk and unlimited upside gains while binary call options have limited risk along with limited upside gain.
Is anyone else check your bank account?
No. Only an account holder can check his/her bank account. If anyone else gains access to your account without your written consent, it is illegal.
What is the point of a stock option loan?
Well a stock option loan is an derivative financial instrument that specifies a contract between two parties for a furture transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction.
Is a self dIRActed Roth IRA a reliable investment option for someone in their fifties?
The self-dIRActed Roth IRA is a good option for an older investor who is willing to consider non-traditional investments. It is important to be aware of the risks that you're taking, and weigh them against the potential gains.
How can I learn about stock options basics?
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction
When did Gains Whiting die?
Gains Whiting died in 1946.
How tall is Courtney Gains?
Courtney Gains is 5' 10".
When was Gains Whiting born?
Gains Whiting was born in 1865.
Does bromine lose or gain electrons?
it gains electrons.
