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Muck, M. (2006a): Where Should You Buy Your Options? The Pricing of Exchange-Traded Certificates and OTC Derivatives in Germany. The Journal of Derivatives 14 (Fall), 82-96.Muck M. Where Should You Buy Your Options? The Pricing of Exchange - Traded Certificates and OTC De- rivatives ...
to buy or sell an underlying asset at an agreed-upon price, until a specified date. If you own a stock and want to reduce how badly any losses might affect you, you could hedge your risk by sellingput optionsagainst your shares.
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