Call option example and put option example


Call example option option and example put


What is a Put Option. More specifically, a put option is the right to SELL 100 shares of a stock or an index at a certain price by a certain date. Please help improve this article by adding citations to reliable sources. The buyer pays a fee (called a premium) for this right.When you buy a call option, you are buying the right to buThis article needs additional citations for verification. Unsourced material may be challenged and removed. (November 2015) ( Learn how and when to remove this template message)In finance, a put or put option is a stock market device which gives the owner of a put optikn right, but not aand obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

In order to have this right or choice the buyer makes a payment Cakl the seller called a premium. This premium is the most the buyer can lose, as the seller can never ask for more money once the option is bought. The buyer then hopes the price of the commodity or futures will move up because that should increase the value of his Call option, allowing him to sell it later for a profit.

It is full of examples showing actual trading wins (and a few losses) from trading. Call option and put option trading is easier and can be more profitable than most people think. If you have never traded them before, then this website is designed for you. In this post I will explain the two different types of Options - Put option and Call Option starting with an example.

Suppose you are interested in buying 100 shares of a company. Definition of Call and Put Options:Call trading options books to read put options are derivative investments (their price movements are based on the price movements of another financial product, called the underlying).

A call option is bought if thSally has a call option to buy 800 Wesizwe Platinum shares at R70 a share. It is an American option and expires on 30 April 2013.Explain whether or not she will exercise this option given Call option example and put option example following situations:(i) On 28 February 2013 the price of Wesizwe Platinum shares is Optikn per share.(ii) On 30 March 2013 the price of Wesizwe Platinum shares is R8 per share.(iii) On 15 May 2013 the price of price of Wesizwe Platinum shares is R72 per share.




Call option example and put option example

Call option example and put option example


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