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What you will get if you Buy a put option or Sell short a stock which becomes Suspended or Bankrupt?
Wiki User
∙ 14y ago
That is very good since you do not have to but back the shares and you make all the money you sold the shares for in the beginning.
Wiki User
∙ 14y ago
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If prices drop what happens to call option prices?
If the price of an underlying commodity or security drops, the value of call options will decline as well. If you are long the calls this would be bad. If you are short the calls this would be good. Long Call - Risk Limited to Option Premium Paid, Profit Unlimited. Hoping for Market Rise. Short Call - Risk Unlimited, Profit limited to the premium received for the option. Hoping for Market Decline, or stay the same. Long Put - Risk Limited to Option Premium Paid, Profit Unlimited. Hoping for Market Decline. Short Put - Risk Unlimited, Profit limited to the premium received for the option. Hoping for Market Rise, or stay the same.
Why in short put the seller o a put option has the obligation to buy the underlying asset?
There are three kinds of these options, from the option seller's point of view: covered calls (you own the stock underlying, and you are giving the buyer the right, but not the obligation, to buy it from you at a certain price), naked calls (same thing but you don't have the stock), and puts (you are giving the put's buyer the right to sell you stock at a certain price; technically there are covered and naked puts but to the seller they're equivalent; the buyer has three days to deliver you the stock after you pay him for it, so it doesn't really matter whether he owned it before he entered into the put contract.)In all of these, the seller of the option warrants that he will do whatever it is the contract requires if the buyer exercises the option.
How much does a farmer make?
Farmers earn money based on the prices of the commodity they raise or grow at the time of sale. Farming is a very complex business dependant on multiple factors including weather, equipment maintenance, commodity prices, bank rates etc. A large herd of beef cattle may start out being a good investment but bad weather, disease and a drop in beef prices at market could bankrupt a farmer in a very short time.
WHAT IS Short run consumption function?
short run consumption function
What is short-run cost function?
what is short-run cost function
What ever happened to collegeclub.com?
in short? myspace=bankrupt
What does suspended temporarily mean?
Temporary suspended means that the suspended individual will be restored after a short predefined span.
Can you use your overdraft after being made bankrupt?
Short answer, No. After being declaired bankrupt you won't be allowed an overdraft or other form of borrowing for seven years.
What is a short form of two words?
A short form of two words is a contraction generally written with an apostrophe. "I am" becomes "I'm", "they are" becomes "they're", "where is" becomes "where's"
Which states can you get a drivers license in if you driver license is suspended in VA?
Short answer, none.
What states can you get drivers license if your drivers license is suspended in Iowa?
Short answer, none.
Which state can you get a drivers' license if you have a California suspended drivers' license?
Short answer, none.
How do you hedge short put option?
Sell the unerlying stock short.
Can fundamental rights be suspended during state emergency?
No. During emergence, only the government is dissolved and the President rule in that state indirectly through the Governor till the next elections are held and the situation becomes moderate. However, if the conditions worsens, then according to Section-144 curfew can be announced and certain civil rights can be suspended for a short period of time.
What are all the five letter word becomes shorter?
"Short" is a five-letter word that becomes shorter when you add two letters.
Is the word shade long or short a?
The word "shade" is short, as it is a one-syllable word.
What five letter word which becomes shorter with two letters into it?
"What five letter word becomes shorter when you add two letters to it?"short + er = shorter
