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The minimum value of a call option is zero. Why is that? Because options lose value with time until they expire on their pre-determined expiration date. Upon expiration, if the price of the underlying stock is less than the strike price of the call option, then the call seller gets to keep the premium received, whereas the call buyer has lost all the money paid for the option. For additional education there are many good websites to consult. One site of interest ishttp:/www.safe-options-trading-income.com.
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What is the value of a call option on maturity?
The value of a call option on maturity is equal to its intrinsic value.For instance, a call option with a strike price of $10 on maturity and its underlying stock being at $15 will have a value of $5, which is its intrinsic value.
Difference between put option and call option?
The holder/purchaser/owner of a call option contract has the right to buy an asset (or call the asset away) from a writer/seller of a call option contract at the pre-determined contract or strike price. The holder/purchaser/owner of a call option contract expects the price of the underlying asset to rise during the term or duration of the call contract, for as the value of the underlying asset increases so does the value of the call option contract. Conversely, the write/seller of a call option contract expects the price of the underlying asset to remain stable or to decline. The holder/purchaser/owner of a put option contract has the right to sell an asset (or put the asset) to a writer/seller of a put option contract at the pre-determined contract or strike price. The holder/purchaser/owner of a put option contract expects the price of the underlying asset to decline during the term or duration of the put contract, for as the value of the underlying asset declines the contract value increases. Conversely, the writer/seller of a put option contract expects the price of the underlying asset to remain stable or to rise.
Is call option and buy option are same or not?
As far as I know there isn't a "buy option," but a call option is an option to buy so I guess you could think of it as a "buy option."
How does the put option values fall and rise while call options values rise and fall as the rerlevant stock prices rises?
The Payoff i.e. profit for a Call Option is St-X where St is the market price at time t and X is the exercise price. Assuming that it is an American Style option where it can be exercised at any time, If St is significantly greater than the exercise price,X, (the agreed price to buy an option at) then if the option holder exercises it immediately they will be 'in-the-money.' This means it has a high intrinsic value which causes a rise in value for the option. The Payoff for a Put Option is X-St where X=exercise price and St equals market price at time t. If the market price increases the gap between X and St (Payoff or Profit) reduces or if X<St then they will be making a loss. This will mean it will have a low intrinsic value (value if exercised immediately) therefore the value of the option will fall.
Call option and put option?
A call option allows its purchaser to buy ("call in") stocks at a certain price on a certain date--say, 100 shares of Walmart for $50 on November 1. A put option allows its purchaser to sell ("put") stocks on a certain price for a certain date. The seller of the option has to buy them (in a put) or sell them (in a call) if the option is exercised.
What is the value of a call option on maturity?
The value of a call option on maturity is equal to its intrinsic value.For instance, a call option with a strike price of $10 on maturity and its underlying stock being at $15 will have a value of $5, which is its intrinsic value.
How do you determine whether the currency option is in the money?
"In the Money" is a term used in option trading as a determinate to if an option has "Intrinsic Value." In the Money, does NOT mean in profit. There are two components to an option value, TIME VALUE, and INTRINSIC VALUE. Time Value + Intrinsic Value = Option Premium. When the market price is above the option strike price of a CALL option, that option is considered "In the Money" i.e. having intrinsic value. When the market price is below the option strike price of a PUT option, that option is considered "In the Money" i.e. having intrinsic value.
What is the value of a call option in maturity?
The value of an option at expiry is the difference between the contractual Strike Price and the asset for which you have the call's price at expiry, so long as this number is positive. Should the value be negative, it is bound by zero. This amount is referred to as the Intrinsic Value. For example, if you own a call option on a stock with Strike at $100. Should the final stock price be $120, then your option is worth $20. Should the final stock price be anything less than $100, say $80, then your option is worth $0.
Difference between put option and call option?
The holder/purchaser/owner of a call option contract has the right to buy an asset (or call the asset away) from a writer/seller of a call option contract at the pre-determined contract or strike price. The holder/purchaser/owner of a call option contract expects the price of the underlying asset to rise during the term or duration of the call contract, for as the value of the underlying asset increases so does the value of the call option contract. Conversely, the write/seller of a call option contract expects the price of the underlying asset to remain stable or to decline. The holder/purchaser/owner of a put option contract has the right to sell an asset (or put the asset) to a writer/seller of a put option contract at the pre-determined contract or strike price. The holder/purchaser/owner of a put option contract expects the price of the underlying asset to decline during the term or duration of the put contract, for as the value of the underlying asset declines the contract value increases. Conversely, the writer/seller of a put option contract expects the price of the underlying asset to remain stable or to rise.
Program for finding a minimum value in javaprogram for finding a minimum value in java?
program for finding a minimum value in javaprogram for finding a minimum value in java
What is a minimum value of a polynomial?
There is no minimum (nor maximum) value.
What is difference between name and value in an HTML Form?
'Name' can be a field and 'value' can defined to the that particular field. Example: <select name="Car List"> <option value="volvo">Volvo</option> <option value="saab">Saab</option> <option value="mercedes">Mercedes</option> <option value="audi">Audi</option> </select>
Can anyone solve this derivative question - piesinpiexx1-x 4 for each x belongs to 01?
We have two portfolios the first you have stock and put option with a strike price X for example ( $50 ). strategy of buying a call option with strike price X for example ( $50 ) in addition you buy a treasury bills with value equal to the exercise price of the call , and with maturity date equal to the expiration date of the two option . are you can pricing the put option if you know the call option price ? Regards,HEBA Khereba We have two portfolios the first you have stock and put option with a strike price X for example ( $50 ). strategy of buying a call option with strike price X for example ( $50 ) in addition you buy a treasury bills with value equal to the exercise price of the call , and with maturity date equal to the expiration date of the two option . are you can pricing the put option if you know the call option price ? Regards,HEBA Khereba We have two portfolios the first you have stock and put option with a strike price X for example ( $50 ). strategy of buying a call option with strike price X for example ( $50 ) in addition you buy a treasury bills with value equal to the exercise price of the call , and with maturity date equal to the expiration date of the two option . are you can pricing the put option if you know the call option price ? Regards,HEBA Khereba
What is the minimum value that cosecant can be of an angle?
There is no minimum value for the cosecant function.
Html pull down menu example for month day and year I would like to get an example on how to write month day and year in HTML form?
# <select name="month" id="month"> # <option value="1" <?PHP if($month==1) echo "selected";?>>January</option> # <option value="2" <?PHP if($month==2) echo "selected";?>>February</option> # <option value="3" <?PHP if($month==3) echo "selected";?>>March</option> # <option value="4" <?PHP if($month==4) echo "selected";?>>April</option> # <option value="5" <?PHP if($month==5) echo "selected";?>>May</option> # <option value="6" <?PHP if($month==6) echo "selected";?>>June</option> # <option value="7" <?PHP if($month==7) echo "selected";?>>July</option> # <option value="8" <?PHP if($month==8) echo "selected";?>>August</option> # <option value="9" <?PHP if($month==9) echo "selected";?>>September</option> # <option value="10" <?PHP if($month==10) echo "selected";?>>October</option> # <option value="11" <?PHP if($month==11) echo "selected";?>>November</option> # <option value="12" <?PHP if($month==12) echo "selected";?>>December</option> # </select> # # <select name="day" id="day"> # <option value="1" <?PHP if($day==1) echo "selected";?>>1</option> # <option value="2" <?PHP if($day==2) echo "selected";?>>2</option> # <option value="3" <?PHP if($day==3) echo "selected";?>>3</option> # <option value="4" <?PHP if($day==4) echo "selected";?>>4</option> # <option value="5" <?PHP if($day==5) echo "selected";?>>5</option> # <option value="6" <?PHP if($day==6) echo "selected";?>>6</option> # <option value="7" <?PHP if($day==7) echo "selected";?>>7</option> # <option value="8" <?PHP if($day==8) echo "selected";?>>8</option> # <option value="9" <?PHP if($day==9) echo "selected";?>>9</option> # <option value="10" <?PHP if($day==10) echo "selected";?>>10</option> # <option value="11" <?PHP if($day==11) echo "selected";?>>11</option> # <option value="12" <?PHP if($day==12) echo "selected";?>>12</option> # <option value="13" <?PHP if($day==13) echo "selected";?>>13</option> # <option value="14" <?PHP if($day==14) echo "selected";?>>14</option> # <option value="15" <?PHP if($day==15) echo "selected";?>>15</option> # <option value="16" <?PHP if($day==16) echo "selected";?>>16</option> # <option value="17" <?PHP if($day==17) echo "selected";?>>17</option> # <option value="18" <?PHP if($day==18) echo "selected";?>>18</option> # <option value="19" <?PHP if($day==19) echo "selected";?>>19</option> # <option value="20" <?PHP if($day==20) echo "selected";?>>20</option> # <option value="21" <?PHP if($day==21) echo "selected";?>>21</option> # <option value="22" <?PHP if($day==22) echo "selected";?>>22</option> # <option value="23" <?PHP if($day==23) echo "selected";?>>23</option> # <option value="24" <?PHP if($day==24) echo "selected";?>>24</option> # <option value="25" <?PHP if($day==25) echo "selected";?>>25</option> # <option value="26" <?PHP if($day==26) echo "selected";?>>26</option> # <option value="27" <?PHP if($day==27) echo "selected";?>>27</option> # <option value="28" <?PHP if($day==28) echo "selected";?>>28</option> # <option value="29" <?PHP if($day==29) echo "selected";?>>29</option> # <option value="30" <?PHP if($day==30) echo "selected";?>>30</option> # <option value="31" <?PHP if($day==31) echo "selected";?>>31</option> # </select> # # <select name="year" id="year"> # <?PHP for($i=date("Y"); $i<=date("Y")+2; $i++) # if($year == $i) # echo "<option value='$i' selected>$i</option>"; # else # echo "<option value='$i'>$i</option>"; # ?> # </select>
What happen to 2 dollar call option bought when XYZ at 20 dollars for strike at 25 bucks expiring on Jan 2009 and XYZ is bought out for 25 bucks per share and deal done in Nov 08 before option expire?
It appears your $2 call option at $25 is worthless because the deal was a buyout was anounced at $25. I'm sure there's still some intrinsic value on the call option due to remaining time until deal is consumated but this time value will decrease as you approach Nov 08 close of dea. Also (and this maybe reaching) perhaps the deal receives higher buyout price thus increasing value of your call option.
Is call option and buy option are same or not?
As far as I know there isn't a "buy option," but a call option is an option to buy so I guess you could think of it as a "buy option."
