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If I own a put and the common becomes worthless is my option truly worth the amount of the strike?
Wiki User
∙ 14y ago
Yes, and that's the risk of selling puts: the company can go out of business, but the put's seller is still obligated to follow through on the transaction.
Wiki User
∙ 14y ago
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What happens to put options when a company goes bankrupt?
What happens is the put writer gets hosed. If a company goes into Chapter 7 bankruptcy, all its stock becomes worthless. Unfortunately for the people who wrote put options on the company's stock, those do NOT become worthless. If the put buyer decides to exercise the option - and he will - the writer has to buy all those shares of worthless stock at the strike price.
Doing electronics engineering from upes dehradun a good option what packages are given for it?
never think of it . it is worthless
Is the seller of the option retains the option premium whether or not the option is expired?
Yes, as soon as the option is sold on the open market to a buyer, the seller immediately receives and retains the option's premium. This premium is kept regardless of the action of the market or the buyer. In the event the option expires worthless, the premium becomes profit for the seller, or in contrast, the premium can be used to help offset loss if the seller decides to close the position and buy back the option. It is important to note, however, that the premium received remains in escrow and cannot be used in any capacity until the risk taken on by the trade is eliminated in due course by either the expiration of the option, or the buy back of the position.
When the policy owner specifies a dollar amount in which installments are to be paid he has chosen which settlement option?
Fixed Amount
What do you do after defeating Darkrai in Pokemon Mystery Dungeon?
You continue with the adventure- evolveing your starters becomes an option then
When stress becomes to much to handle on your own which should you consider as your next option?
Professional help.
What is the benefit of choosing extended term as a nonforfeiture option?
it has the nighest amount
When stress becomes too much to handle on your own which should you consider as your next option?
Professional help.
Did Pontiac fieros have tilt wheel?
It was a very common option.
What is the amount of financial aid for a freshman?
Contact your student aid for the answer. This is your best option.
What are some common trends in commodity option trading?
Two common trends in commodity option trading are; 'Futures and Sell option' (buy a future contract for a certain month and sell an option contract for that same month) and 'Buy Futures and Buy Options' (buy both the future and option contracts in order to protect yourself in case one goes lower).
What is Option C Print from Revenue Canada Agency?
It is similar to a Notice of Assessment but more detailed in that it contains more lines from your return and if my memory serves me correct it includes the amount you filed at each line and the amount they allowed in the assessment. Option C refers to the option that the information is obtained from in their system.
