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Put options give investors the right to buy a share at a certain strike price before a specified date?
Wiki User
∙ 14y ago
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Think of the word 'up' replaced by the term 'call' and the word 'down' replaced by the term 'put'.
So what you're asking about is a put, which means you're looking for the stock to go down. So if you use your rights and 'exercise' the option before it 'expires' then you would be using your right to sell the stock or rather 'short' the stock. The opposite, would be to buy a call option, therefore giving you the right to purchase the stock before the expiration date.
If you'd like further help with understanding options please visit my blog and ask a question there. I'd be more than happy to answer it for you.
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∙ 14y ago
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What is types of derivatives?
The common derivatives in the market are futures contracts, options and swaps. A futures contract is a contract between two or more parties to trade a certain asset at a specified date in the future at the price agreed on today. Swaps are contracts to exchange cash on or before a certain future date. Cash is exchanged based on the underlying value of commodities, stocks, exchange rates or other such assets Options give the owner the right but not the obligation to buy or sell an asset. The sale takes place at a certain price called the strike price. This price is specified when the parties enter into the contract. This contract will also specify a maturity date. There are five major classes of underlying assets. These are interest rate derivatives, foreign exchange derivatives, credit, equity and commodity derivatives.
What are strike price call put when it is comes to stock options?
From Investopedia.com:What Does Strike Price Mean? The price at which a specific derivative contract can be exercised. Strike prices is mostly used to describe stock and index options, in which strike prices are fixed in the contract. For call options, the strike price is where the security can be bought (up to the expiration date), while for put options the strike price is the price at which shares can be sold.The difference between the underlying security's current market price and the option's strike price represents the amount of profit per share gained upon the exercise or the sale of the option. This is true for options that are in the money; the maximum amount that can be lost is the premium paid.Also known as the "exercise price".What Does Call Mean?1. The period of time between the opening and closing of some future markets wherein the prices are established through an auction process.2. An option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time.What Does Put Mean? An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option estimates that the underlying asset will drop below the exercise price before the expiration date.
What provision allows the issuer to redeem the bond before its maturity at a specified price?
Call Provision
How many house payments can one miss before being foreclosed?
If it is not specified in the contract then it is likely at the descretion of the lender.
Colemans preferred stock is riskier to investors than its debt yet the yield to investors is lower than the yield to maturity on the debt Does this suggest that you have made a mistake?
Corporate investors own most preferred stock, because 70 percent of preferred dividends received by corporations are nontaxable. Therefore, preferred often has a lower before-tax yield than the before-tax yield on debt issued by the same company. Note, though, that the after-tax yield to a corporate investor and the after-tax cost to the issuer are higher on preferred stock than on debt.
What is put and call in Nifty?
Put options refers to an option of selling stock at a specific price on or before a certain date, similar to that of insurance policies. While, Call options are options to buy stock at a specified price on or before a certain date, similar to security deposits.
What is types of derivatives?
The common derivatives in the market are futures contracts, options and swaps. A futures contract is a contract between two or more parties to trade a certain asset at a specified date in the future at the price agreed on today. Swaps are contracts to exchange cash on or before a certain future date. Cash is exchanged based on the underlying value of commodities, stocks, exchange rates or other such assets Options give the owner the right but not the obligation to buy or sell an asset. The sale takes place at a certain price called the strike price. This price is specified when the parties enter into the contract. This contract will also specify a maturity date. There are five major classes of underlying assets. These are interest rate derivatives, foreign exchange derivatives, credit, equity and commodity derivatives.
Does health insurance cover removing your tonsils?
Health insurance will cover the majority of it up to a certain amount. You are also responsible for the deductible (a specified amount that you have to pay before insurance kicks in).
What does before or simultaneously to a specified date mean?
let's start with "before". Before a specified date means that it is occurring or taking place earlier than it is required. Simultaneously on the specific date means involves two events that will happen on the same time on that particular specified date.
Are there Any private investors in North Carolina?
Yes. are their any private investors in northcarolina that can help a homeowner to save her house before it goes into foreclousere.
Before 1860 most factories and mills were owned and operated by who?
foreign investors
When it comes to social responsibility some people feel that before you can do good you must do well?
Investors
Where can one buy trade options?
Options can be traded through a brokerage account. Most major brokerage firms, such as TD Ameritrade, E*TRADE, and Charles Schwab, offer options trading as part of their services. You can also trade options through online platforms such as thinkorswim, tastyworks and other platforms. It's important to note that options trading involves significant risk and may not be suitable for all investors. Before trading options, you should carefully read the Characteristics and Risks. My recommendation :🅷🆃🆃🅿🆂://🆆🆆🆆.🅳🅸🅶🅸🆂🆃🅾🆁🅴24.🅲🅾🅼/🆁🅴🅳🅸🆁/419038/🅶🅰🅲🅷🅾23/
What are Options Trades?
Trading options are the options that you have when you trade. This mostly applies to when you trade stocks. There are many options of stock for you to choose from and they are the trading options.
How long can one drive with a temporary registration?
Until the date specified before renewal.
What are strike price call put when it is comes to stock options?
From Investopedia.com:What Does Strike Price Mean? The price at which a specific derivative contract can be exercised. Strike prices is mostly used to describe stock and index options, in which strike prices are fixed in the contract. For call options, the strike price is where the security can be bought (up to the expiration date), while for put options the strike price is the price at which shares can be sold.The difference between the underlying security's current market price and the option's strike price represents the amount of profit per share gained upon the exercise or the sale of the option. This is true for options that are in the money; the maximum amount that can be lost is the premium paid.Also known as the "exercise price".What Does Call Mean?1. The period of time between the opening and closing of some future markets wherein the prices are established through an auction process.2. An option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time.What Does Put Mean? An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option estimates that the underlying asset will drop below the exercise price before the expiration date.
What does it mean on wheel alignment reports that say Actual before and specified range?
Actual before is the alignment of the vehicle when readings are first made to determine how far out alignment is. Specified range is the parameters that alignment can be made to fall under manufacturers specs
