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What Are Stock Options
Beginning of essay
You buy or trade stocks, bonds and mutual funds. Some investors use options on stocks or cash indexes to protect and insure the value of their portfolios. A major advantage of options is their flexibility.
You can protect stock holdings from a decline in market price
You can in ....
Middle of essay
....ligation, to buy or sell a particular asset at a fixed price (the strike price) for a specific period of time or until expiration. To the buyer, an equity call option normally represents the right to buy 100 shares of underlying stock, whereas an equity put option normally represents the right to sell 100 shares of underlying stock. The seller of an option is obligated to perform according to the terms of the options contract-selling the stock at the contracted price for a call seller, or purcha.... |
| Number of words: 1328 |
Approximate pages: 5 |
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