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Stock Options and Futures
Options are the right to buy or sell a security at a set price over a specified period of time. Futures are contracts to buy or sell assets at a set price on a predetermined future date.
827 Questions
Using a put AND a call at the same time? That's a hedge.
If we could use a put OR a call to exploit your convictions, try this:
If you think the price of a stock is going to go down, buy a naked put. If the stock goes down enough for you to make money after paying the premium, you call your broker and order the option be exercised, at which point they will buy stock for you, deliver it and collect the payoff. They will put the profit from the deal in your account.
If you think the price is going to go up, buy a call. If the stock goes up enough for you to make a profit, call the broker and exercise then immediately sell.
What does futures mean in the stock market?
Futures Contract:
A futures contract is an agreement to buy or sell an asset at a certain time in the future at a specific price. The Contractual terms of the futures contracts are very clear. The Futures market was designed to solve the shortcomings in the forwards contracts. Unlike forwards, futures are traded in organized exchanges. They also use a clearing house that provides the necessary protection to both the buyer and the seller. The price of the futures contract can change prior to delivery. Hence, both participants must settle daily price changes as per the contract values.
An Example of a futures contract would be an agreement to 100 tonnes of Steel at Rs. 10000/- per tonne at some date say in December 2008. If no interim payments are made and if the price of Steel moves violently, a considerable credit risk could build up. To avoid this a margin system is used by the exchanges. As per the margin system, both parties must deposit a small sum with the exchange. This amount will be a small percentage of the total contract. This amount is called the initial margin. As the steel value changes, the contract value also changes. If the contract value changes, the margin must be topped up by an amount corresponding to the change in price of steel. The margin money is the property of the person who deposits it and would be returned to them if the contract gets cancelled/completed.
Characteristics of Futures contract:
1. They are traded in organized exchanges
2. Credit risk is eliminated with the margin system. Both parties deposit a portion of the contract with the clearing house.
3. Both the buyer and seller are bound by the contract terms and are expected to honour their end of the contract.
Where can you put your money to earn monthly income besides the annuity CD stock market?
As retired employee in addition to investing in stocks I have deposited a reasonable amount in banks to get monthly interest, and kept some amount in the shape of liquid cash to meet any untoward emergencies.
What award of stock options means?
It means you work for a really cheap company, or you make more money than they can deduct from their corporate taxes.
When you're awarded stock options, you have permission to buy at a stated price a stated amount of your company's stock. Maybe the option is for 100 shares at $20 per share. If the stock goes up to $30, you buy the stock with the option and you've made $10 per share, right away. In the language of derivatives, incentive stock options are a form of covered call. The tax treatment is a little goofy, tho: there are two holding periods. You have to hold the stock you buy at least two years from the time you receive the option, and at least one year from the time you exercise the option by purchasing the shares. If you meet both holding periods (which are concurrent, incidentally; most recipients exercise these within the first year they have them, so that when the two-year period ends they're free to sell) you pay taxes on the profits at the long-term capital gains rate, which is 15 percent. Sell before both have elapsed and you pay tax at the ordinary income tax rate, which is quite a bit higher.
Now understand, these things cost the company very little, if anything. If a company has to go out on the market and buy the options from a brokerage they'll pay the premium charged on an option...but they can also generate a new issue of stock, hold it, and allow the options to be redeemed for that stock. In that case, the options really are free.
Now as to the two reasons to issue options.
The first is if you're a rank-and-file worker who receives them. That's where the cheapness part comes in. An option is given in lieu of cash compensation...so if you pay a $100,000 employee half in cash and half in options, and you have a lot of these guys, you save a pile of money.
The other has to do with the tax treatment of executive compensation. The cash you pay an officer of your company is deductible from your pretax income up to the sum of $1 million. If you want to pay your CEO $20 million, and you want to be able to deduct it all, you have to give him $19 million in incentive stock options and $1 million in cash. The worst abuse of this I ever saw was the CEO of nVidia, the computer graphics chip maker. They paid him $35 million, but only $10,000 of it was in cash.
What is the ticker symbol for MassMutual Financial Group?
MassMutual Financial Group is a private company and as such does not have a publicly-traded stock.
When a stock option can be exercised?
There are two kinds of options: American-style options and European-style options. American options can be exercised at any time up to the maturity of the option, whereas European options are exercised toward the end of the contract.
What is Exercise of Stock Options?
Stock options is when you have a right to buy (or sell, but most commonly buy) a stock at a predetermined price.
Exercising a stock option means that you use it: You buy the stocks at the agreed price, and the options expire as you spent them on the stock purchase.
1) Is the body in good shape? (No rust, etc) 2) Do you like the car? 3) Has it been reliable? (It's a Honda, so it must have been) If yes, then replace the engine (but then I'm a car nut). If you don't want to put that much money into the car by rebuilding the motor, you can always get a motor from the junkyard.
What is the vega of an option?
Option Vega is the change in the value of an option for a 1-percentage point increase in implied volatility, i.e. the first derivative of the option price with respect to volatility.
What are the main defects of the Black and Scholes model?
Black-Scholes makes the following assumptions (which are not valid in reality)
- constant volatility (not valid in the long term),
- efficient markets (hence no room for artbitrage),
- constant interest rates,
- log-normal returns,
- the option are imlicitly European and can only be exercized on their expiration date
- no commission or transaction costs,
- and perfect market liquidity.
How do you calculate stock options?
The price of stock options depends on 5 main factors:
1. strike price in relation to the prevailing price of the stock
2. Dividends
3. Risk free interest rate
4. time to expiration
5. volatility
Item 1 determines the intrinsic value while the other 4 items determines the extrinsic value. Intrinsic value + extrinsic value = price of an option.
How do you explain the Black-Scholes formula?
Well...the way I'd explain it is as "the worst atrocity ever inflicted on the financial world." Which may not be specifically true, but it's not far off.
Black-Scholes is a neat schoolhouse formula for determining The Proper Price To Trade Options At.
Here's the problem: Black and Scholes assume there's only one risky item in an options transaction, and it's the stock. The money you use to buy it is considered riskless, and you can borrow as much as you want at a low interest rate. There are no transaction fees, and you can sell even a fraction of a share of stock. Unfortunately, none of those things are actually true.
Those who believe in Black-Scholes believe you can put hard, scientifically-valid formulas to work to determine the price of something which can't actually be priced out that way, and they've cost people a LOT of money by doing it.
What exactly is the conquista option?
the conquista package is two stripes of moulding and two tone paint
How do you put on a protective cup?
Answer
1. Always wear a cup in a cup-jockstrap, cup-brief, or cup-sliding short that's designed to hold a cup. The jockstrap, brief or sliding-short will have a pouch to house the cup. There will be elastic, metal snaps or a Velcro closure to keep the cup in place in the pouch.
2. A cup (inside a cup-jockstrap, cup-brief, or cup-sliding short)should be worn without anything underneath (don't wear underwear underneath). This maximizes their protectiveness by completely encasing the male genitals and allowing the genitals to be held tightly against the body. However, if you want to wear something underneath, only a thin pair of nylon/spandex briefs should be worn. EXAMPLE: Under Armor Compression Shorts.
3. For a cup to work properly, it must fit tightly and firmly against the body. A loose fitting cup will allow the impact of a blow or hit to slam the cup into the testicles, causing pain and possible injury. If your cup-jockstrap or cup-brief does not hold your cup firmly and tightly against your body you can wear a pair of tight fitting nylon/spandex athletic briefs over them.
4. Put on the Cup
Step into cup-jockstrap and pull elasticized leg straps up around legs, and the waist-strap firmly around waist with the hard cup at the front of your body and over your genitals.
Insert testicles into bottom and narrower end of cup.
With triangular-shaped cup, lift penis up and lay across inside top of cup. With banana-shaped cup, allow penis to hang down.
The cup should obscure genitalia.
5. Remove when finished and clean. Jockstrap can be washed in machine but should be air-dried to not damage elastic. Cup should be washed by hand with warm water and soap and never in machine.
Generally, there are two different styles of cups, the first being the "traditional," older style of cup. It's shaped like a "V" and some brands of this design have part of their capacity at the bottom to encapsulate the testicles to protect them. It's also somewhat flat on the side that fits against the body, although some brands contour somewhat to the body and provide room for encapsulating the penis to support and protect it as well. The other style of cup--commonly referred to as a "banana cup" because it's curved like a "banana" to contour the body--is also narrower at the bottom, and its capacity is intended to encapsulate a man's genitals in their natural "hanging down" mode.
- The "traditional" cup would appeal most to men who prefer their penis to be held upward and laid across/inside the wide top part of the "V" shaped cup. Conversely, the "banana cup" is designed so that the penis dangles downward, which is more comfortable for some men. Not all "traditional" cups have enough capacity for some men. It is important when selecting a cup to buy one that has sufficient capacity and adequate rubber or foam padding on its edges. All cups, both the "traditional" and the "banana" cup, must fit firmly and tightly against the body to work properly. Some of the cup-jockstraps, cup-briefs, or cup-shorts that come with cups do not hold the cup firmly and tightly against the body. If a cup fits loose, an impact to the cup will just slam the cup into the testicles, resulting in almost as much pain and injury as if the man wasn't even wearing a cup. For a cup to work properly, it must be able to transfer the energy of a blow or impact through the cup and into the rubber or foam padding and against the body but not against the penis or testicles. Tight fitting nylon/spandex athletic briefs can be worn over a cup-jockstrap to hold it firmly and tightly against the body.
- Which of the two styles of cups is most comfortable for a man to wear depends on his unique body shape and on the brand of cup he wears -- not all "traditional" cups and not all "banana" cups are the same. Some men feel that the banana cup is much more comfortable than the traditional cup since not all traditional shaped cups conform properly to the body. However, having said this, it should also be stated that some of the traditional shaped cups are very comfortable to wear and are very good protectors. Make sure to buy a cup that will hold all of you. If not, the cup can tend to float over the genitals, sometimes pinching them on impact and not providing the intended protection.
- The new "Nutty Buddy" cup, tries to make the best of both worlds by fully encompassing the genitals while allowing the penis to point up yet still contouring to the body. The cup is available in different sizes so fitting is not a problem. When worn under tight fitting nylon/spandex sports briefs, the Nutty Buddy reveals the natural outline of the male, so men do not need to feel embarrassed in the locker room because they are wearing a cup-protector.
- There are many different types of cups that are intended for their specific sport application. Hockey goalies (ice or roller), boxers, soccer and baseball players should wear a cup designed for their sport. However, remember that years of sales promotion can not provide your needed protection! Have you even seen a boxer go down because of a "low blow"? That's because he was not wearing a tight fitting Nutty Buddy! Loose cups result in pain! Big leather "no-foul" protectors don't protect adequately if they don't fit tight!
- A man should never feel embarrassed in the locker room because he is putting a cup-protector on, even if some of the other athletes are not putting one on. He should always feel proud that he knows he should protect his genitals from injury when he is playing sports.
As with any protective gear, you can still get hurt! But remember, if your cup is damaged, just think what might have happened if you didn't have a cup on at all!
- Men should consider shaving or trimming their pubic hair on the scrotum and around the base of the penis before wearing a cup. This ensures the cup does not pull on the hairs and cause unexpected pain.
- Once again, remember to always wear your cup "tight-fitting" to your genitals. If a cup fits loose, an impact to the cup will just slam the cup into the testicles, resulting in almost as much pain and injury as if the man wasn't even wearing a cup.
Other Important Information
- A goalie cup features extra padding around the cup holder, and also on the front side of the waistband. Goalies facing fast and hard slap-shots should double-cup. Either wear a banana cup underneath the goalie cup or purchase a goalie cup that features a "double cup."
- Boxers wear a cup that have a wide, padded waistband all the way around, to protect the kidneys. They are worn over or under shorts. However, better protection will be delivered to the groin wearing the cup under the shorts. Some manufacturers of "no-foul" boxing cups are now realizing that their boxing cup-protector must fit real tight against the body to provide 100% protection. A boxer should never go down in pain because his "no-foul" cup-protector didn't protect him adequately. Currently, it is likely that the big leather no-foul protectors are being redesinged to provide for a very tight fitting cup-protector which will completely eliminate the impact of a "low blow" to a boxer.
- Some soccer and basketball players prefer to wear a "soft" cup, that is made of a pliable plastic. It's not as protective as a hard cup, but allows for some protection applicable to less-risk sporting games. However, if you feel you need more protection when playing these sports then you will want to wear a hard cup.
What a cheater. I have the same school paper, same questions. Look it up, do the work yourself. Wow.
Uh, I have the paper as well and I've looked everywhere. I can't seem to find the answers on my own and sometimes people need help getting answers to get the grade. That doesn't make them a cheater, the person is looking for higher intelligence for help. Jeez.... Sorry I don't have an answer, I need one too...
Is there a convertible Infiniti G35 planned for the future?
Yes, a convertible Infiniti G37 is announced and will be available on November 19th, 2008. It has a roof looks exactly like G37 Coupe.
A club option is when the club has the option to retain the player for one final year at a predetermined salary. So if a player has a 2 year deal with a club option, the club can keep him 2 or 3 years if they wish.
The player option is reversed. The player has the option to stay with the club an extra year or decline and become a free agent.
What are the stock performances of a 91 Toyota Celica gt?
Base models got a 130-horsepower, 2.2-liter 4-cylinder engine, borrowed from Toyota's Celica GT/GT-S. A turbocharged, 200-horsepower 2.1-liter engine, also used in the Celica All-Trac Turbo, went into the Turbo MR2. Both engines were dual-overhead-cam designs with four valves per cylinder, mounted transversely. A supercharged engine, available in 1989, was not used in the 1991. A 5-speed manual transmission was standard, with 4-speed automatic optional for nonturbo models. Unequal-size tires and wheels were installed: 195/60 on 6-inch wheels up front, versus 205/60 on 7-inch wheels at the rear.The wheelbase had been increased by 3.2 inches, measuring 9.3 inches longer overall, the new MR2 weighed 350 to 400 pounds more than its predecessor. ANSWER: With a '91 GT, you can expect 0 to 60 times of slightly less then 10 secs.
How do you open an option trading account?
Opening an options trading account is a simple matter of just going to one of the many popular online options brokers and opening an account for free. Simple as that. Go to the recommended link below for a list of such options brokers.
What is the difference between a forward and a striker?
Striker is furthest up the field. Goal poacher. A forward is the deeper auxiliary striker who creates chances with through balls, surging runs towards goal and forage deeper for the ball IE E.Adebayor / R.Van persie
How do I take the stock deck out of my 2000 grand am so I can put an after market deck in there?
It should be very simple. The trim around the deck should snap off pretty easily. Then there should be 4 7millimeter screw securing it in the dash, removie those. Unplug the harness, DO NOT CUT IT OFF!! I cant stress this enough. Youll need to buy a dash kit to make it fit correctly, a harness for the wiring, and a GM antenna adapter. You can go without the antenna adapter if you dont listen to radio, but if you do you absolutely need it. Get a harness that plugs into the stock wiring harness, it makes it really easy to install plus if you ever sell the car the factory radio plugs right in. The harness is color coded so you just match color to color basically with the deck harness. Just shell out the 53 bucks its gonna cost you for the parts or youll turn a hour job into a day job.
How do the Composite Indexes predict future events?
The indexes predict by assuming that past trends and relationships will continue into the future.
