or giving someone else the right to buy your stock. The investor collects the option premium and hopes the option expires worthless (below strike price). This strategy generates additional income for the
or giving someone else the right to buy your stock. The investor collects the option premium and hopes the option expires worthless (below strike price). This strategy generates additional income for the
Out-of-the money calls: When the stock price falls below the strike price, making the option exercise futile as the shares are more expensive to buy. Note If the price doesn't rise above the strike price, the buyer won't exercise the option. The only loss is the premium. That’s ...
or giving someone else the right to buy the stock. The investor collects the option premium and hopes the option expires worthless (below strike price). This strategy generates additional income for the investor but can
The amount that your put option's strike price is above the current stock price is called its "intrinsic value" because you know it is worth at least that amount. Example of an "In the Money CALL": If the price of YHOO stock is at $37.75, then a call with a strike price below $...
In the world of call options, your call options are "in the money" when the strike price of your calls are less than the current market price of the stock. The amount that your call options' strike price is below the current stock price is called its "intrinsic value" because you know...
百度试题 题目A call option has a strike price of 120, and the stock price is 105 at expiration. The expiration day value of the call option is: A. 105. B. 15. C. $0. 相关知识点: 试题来源: 解析 C 略 反馈 收藏
If the stock price stays below the strike price, they would keep all the premiums on the call options because they would be worthless. They would still profit if the shares rise above $15 because they are long from $8. Since the investor is short call options, they are obligated to deli...
option, or giving someone else the right to buy your stock. The investor collects the option premium and hopes the option expires worthless (below strike price). This strategy generates additional income for the investor but can also limit profit potential if the underlying stock price rises ...
1A European stock index call option has a strike price of 1,160 and a time to expiration of 0.25 years. Given a risk-free rate of 4 percent, if the underlying index is trading at 1,200 and has a multiplier of 1, then the lower bound forthe option price is closest to:[单选题...