A bull call spread consists of one long call with a lower strike price and one short call with a higher strike price. A bull call spread is established for a net debit (or net cost) and profits as the underlying stock rises in price.
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Definition: A credit spread option is an options strategy in which investors realize a profit by buying two rights or option positions on the same underlying asset with the same maturity dates, but both have different strike prices. The theory is that the amount received from the short leg of...
What is a catastrophe call spread option? How do the cash flows of this option affect the buyer of the option? Explain the difference in the gain and loss potential of a call option and a long futures position. Under what circumstan...
What Is An Options Spread? Options Spread are strategies used to trade options in the financial market and consist of the spread positions between the price of options in the same asset class with an equal number of options with a different strike price and expiration dates. The expiration date...
15. Please decide which part is false in the following statement, then underline it and explain why. ➢Memory skills can bring us into the future, so we should imagine a negative end result to drive us into action wh...
A bettor would wager against the 'spread' which would require a decision on whether the spread betting firm has predicted too high or too low, and this is known as long and short spread betting. There will be two prices, given the names 'bid' and 'offer' and the punter has the option...
You pay a fee to purchase a call option, called the premium; this per-share charge is the maximum you can lose on a call option. Call options may be purchased for speculation or sold for income purposes or tax management. Call options may also be combined for use in spread or combinatio...
You pay a fee to purchase a call option, called the premium; this per-share charge is the maximum you can lose on a call option. Call options may be purchased for speculation or sold for income purposes, or tax management. Call options may also be combined for use in spread or combinat...
Options can also be used for speculation.Speculationis a wager on future price direction. A speculator might think the price of a stock will go up, perhaps based on fundamental analysis or technical analysis. A speculator might buy the stock or buy a call option on the stock. Speculating wit...