0
What else can I help you with?
The supply curve shows the relationship between?
Supply curve shows relationship between price of the particular commodity and the quantity supplied of that commodity at different price level.
What do you call an agreement made between different companies to the same amount for product?
An agreement between different companies to charge the same amount for a product or service is known as "price-fixing" whereby rival companies agree not to sell goods below a certain price.
Are physicians price setters or price takers?
I think they are price setters , since they seek utility maximization ! so each of them can balance between (net income , leisure - inducement ) through setting individual price different from another physician .
What is the difference between stock price maximization and price maximization?
Profit maximization does not reflect (1) the timing of profits and (2) the riskiness of different operating plans. However, both of these factors are reflected in stock price maximization.
How is a price floor different from a price ceiling?
Price floor is a minimum and price ceiling is a maximum.
What is the difference between the strike price and exercise price in options trading?
The strike price and exercise price in options trading are the same thing. They refer to the price at which the option holder can buy or sell the underlying asset.
What is the Relationship between option price and exercise price?
For a call option, the option price is convex and decreasing with increasing strike price, assuming a fixed maturity and same underlying price.
When should you exercise a put option?
You should exercise a put option when the stock price is below the strike price of the option, allowing you to sell the stock at a higher price than its current market value.
How do you exercise a put option?
To exercise a put option, the holder of the option must inform the seller that they want to sell the underlying asset at the agreed-upon strike price before the option's expiration date. This allows the holder to sell the asset at a profit if the market price is lower than the strike price.
How to exercise a put option?
To exercise a put option, the holder of the option must notify the seller of their intention to sell the underlying asset at the agreed-upon strike price before the option's expiration date. This allows the holder to sell the asset at a profit if the market price is lower than the strike price.
In relation to stock options what is the strike price?
The strike price of a stock option, is a fixed price at which the owner of the stock can either buy or sell at. The strike price is a key variable in a derivatives contract between two people.
What happen if spot price remains above spot price in call option in stock?
If the spot price of the stock exceeds the "strike price" in the call option, the option is in-the-money and you can exercise it. But if you have a choice, wait to exercise it until the stock's spot price exceeds the strike price enough to cover the premium. Example: the strike price is $40 and the premium was $2. In order to make money on this option, the stock price needs to be over $42--enough to pay for the stock and replace the money you spent buying the option.
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.
When is the best time to exercise a put option?
The best time to exercise a put option is when the market price of the underlying asset is below the strike price of the option, allowing you to sell the asset at a higher price than its current market value.
How can one exercise a call option?
To exercise a call option, the option holder can buy the underlying asset at the strike price before the option's expiration date.
How can I exercise a put option?
To exercise a put option, you need to notify your broker that you want to sell the underlying asset at the strike price before the option's expiration date. This allows you to profit from a decrease in the asset's price.
When should you not exercise a call option?
You certainly should not exercise a call option when the stocks price is above the strike price. If you really want the stock, go and buy it at the market price. For example, if you own an option with a strike price of $15 and the stock is trading at $9, why would you pay $15 to buy a stock that you could only buy or sell for $9. That would be irrational.
