A stock option is a right to buy?
A stock CALL option is the right to buy. A stock PUT option is the right to sell.
See related links for a nice resource and articles how options work.
In the Derivatives markets, a stock option or "option" is a contract to buy or sell the underlying stock at a Strike price. This agreement allows you to pay a premium for this arrangement. See more answers to such questions at http://growthmag.com .
What is a futures executioner?
A futures Executioner is a person that completes contracts between a buyer and a seller for the price and delivery of the stock or goods at a future date.
How to buy Gold in the share market?
Most experts will tell you to buy the GLD. An exchange traded fund that is backed by gold. Its very convenient because it can be traded or invested in like a stock or fund through your online broker. It gives you exposure to the gold price.
She had a net gain of $400 or got 9.6% on her initial total investment over 6 months. She will have to pay $60 in taxes (15% capital gains tax).
If she put $9500 in a Bank CD, she would have not had the $285 for investments costs, but would have only made (approx.) $47.50 in a 6 month CD.
0.25
What Banks Participate in medallion sicnature guarantee program in Wichita Ks?
What Banks participate in medallion signature guarantee program in Kansas
Seats for brokers IN Karachi stock exchange?
Other financial instruments can be options or commodity futures. The job of a stock broker in the US is to give advice to clients that wish to participate in the financial markets.
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200
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What are the uses of forward contracts?
Forward contracts are like futures: they obligate the buyer and seller to complete the transaction for a stated price. They're unlike futures: whereas a futures contract gives a specific description of what and how much product is being traded and when it's to be traded, a forward contract can be written any way you want.
So...forward contracts are used when you're dealing with unknowns. Farmers use them to sell "their whole crop upon harvest" because they don't want to sell "10,000 bushels of wheat on September 9" when it might be 9,000 or 11,000 bushels, or it might come in on August 31 or September 14.
What are the differences between stocks bonds and cds?
Cds, Stocks, and bonds are 3ways to get money. But you need to be able to know what they are and how to use them.
First off we have Cds which stand for certificate of deposit. Cds are like savings accounts because they are risk free and are insured by the bank. Cds have fixed terms and have fixed interest rates and if you get a Cd they are supposed to be held in till the maturity which can be awhile, it matters how long the term is. So if you get a Cds it will be good to get it while you're young or get it for your children while their young. The good thing about Cds are that they are insured by the bank and also Cds have a fixed rate so they don't get raised and after the maturity rate ends you get more money then you put in. The bad thing is that you have to wait a long time to wait for the maturity rate to end and if you need that money then you won't get all the money you could get.
Bonds are a debt security in which the issuer 0wes the holders a debt and is obliged to pay interest or pay at a latter date. Bonds are formal contracts to get borrowed money with interest at fixed intervals. So bonds are like loans but it gives the borrower with external funds or finance current expenditure. Bonds are different from cds because you are taking a risk when getting one. The co. that you are getting a bond from could be shut down and they don't have to give you're the money cause it is not insured. Also the rates are not fixed and can go up. The good thing about it is that bondholders have a creditor stake in the co your in.they are like cds cause they have a maturity . They are like stocks cause they both have securities.
Stock is the subscribed capital of a corporation or limited-liability company, divided into shares and is represented by transferable certificates there are more then one type of stock but the most common is common stock. Common stock makes your have a share of the co. you're buying from and you get money form the co. you get stock from, which is interest in the cos. earnings and assets. You also have voting rights that can vote in a new Coe. Stock is like a CD cause it takes awhile to get money out of it. They are like bonds because they are risky and if you don't know what you're doing you could lose a lot of money and also its not insured. The bad things about stock are that it is not insured. Also it takes a while to get real money and you really have to know what you're doing. Also it hard to get a share of a stock that is any good and it cost a lot for the good ones.
How an option holder gains from the volatility of the underlying stock price?
A component of the option price is the implied volatility of the stock.
When the implied volatility rises the price of the option rises slightly.
Read more about VEGA & DELTA of an option.
What is the difference between Forward trading and future trading in India?
Forward trading involves private agreements between two parties to buy or sell an asset at a predetermined price on a specific future date, typically tailored to the needs of the parties involved. In contrast, futures trading occurs on regulated exchanges with standardized contracts, allowing for greater liquidity and transparency. Futures contracts are marked to market daily, meaning profits and losses are settled daily, while forward contracts usually settle at the end of the contract term. Additionally, futures are subject to margin requirements and regulatory oversight, unlike forward contracts.
Which public company has the most shares outstanding?
companyTicker
Shares outstanding (billions)
General ElectricGE
10.1
MicrosoftMSFT
9.3
PfizerPFE
6.8
Cisco SystemsCSCO
6.1
AT&TT
6.0
IntelINTC
5.8
Exxon MobilXOM
5.4
OracleORCL
5.1
CitigroupC
5.0
Bank of AmericaBAC
4.4
Source: MSN Investor
How much is one heating oil future contract in gallons?
A heating oil futures contract is 1000 US barrels, or 42,000 gallons.
A semi with a oil tank holds 5,000 gallons, so one futures contract equals seven truckloads of oil.
Advantages of operating in forward market?
Forward market allows the dealers to concentrate on their core line of business because they don't bother themselves with the risk of currency exchange.
There is no premium paid upfront on forward contract as compared to futures and options.
What are the reasons for holding stock?
reasons for holding stock
A down and out call option is a type of barrier option that becomes worthless if the underlying asset's price falls below a specified barrier level during its life. If the asset stays above this barrier, the option remains valid and can be exercised if it is in the money at expiration. These options are often cheaper than standard call options due to the added risk of expiring worthless if the barrier is breached. They are used by investors looking for protection against significant declines in asset prices.
What are the prerequisites of becoming a day trader?
As far as I know the only requirement is to have no less than $25,000 in your account. Call up your broker to be certain of all the requirements. I've heard of accounts being frozen for a short period of time because of accidental day trading. Most of the time, the larger brokers have great/friendly customer service.
Good luck with it!
A hedger (an end user) who buys a futures contract is betting that prices are going to go up before settlement date. By purchasing a futures contract, he is shielding himself from upside risk.
Example: I am a hog finisher and I want to pay $7.65 per bushel for corn in March 2012. I therefore buy a futures contract at $7.65 per bushel. I know if I buy corn at that price I can make a profit by growing the pigs for 14 weeks and selling the carcasses for $98 per hundredweight, so I sell a forward contract (it's like a futures contract but it doesn't specify the weight I have to provide, which gives me security if Porky and Petunia die before they can be sent to market or they grow too slowly or too fast) at 98 cents per pound. Now there is no financial risk. (There is still risk from things like widespread hog deaths, lagoons breaking, bad weather, fires and all that other stuff that can befall a hog finisher, but at least the money is taken care of.) OTOH, if I tried doing my job without derivatives to shield me from market risk, corn getting expensive or pork getting cheap would put me in a world of hurt.
What position in call options is equivalent to a protective put?
An investor who purchases a put option while holding shares of the underlying stock from a previous purchase is employing a "protective put."
In other words, you buy a put option on stock you already own.