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A financial option is a contract between two counterparties with the terms of the option specified in a term sheet. Option contracts may be quite complicated; however, at minimum, they usually contain the following specifications: [8] whether the option holder has the right to buy (a call option) or the right to sell (a put option)
This is called the moving average or the average price of a stock over a specific period of time. As a stock is trending upward throughout a day or two it could be an opportunity for gains and as a stock trends downward it could be a great opportunity to short the stock. Many analysts use chart patterns in an attempt to forecast the market ...
The other major kind of option is called a put option, and its value increases as the stock price goes down. So traders can wager on a stock’s decline by buying put options.
This extra money is for the risk which the option writer/seller is undertaking. This is called the time value. Time value is the amount the option trader is paying for a contract above its intrinsic value, with the belief that prior to expiration the contract value will increase because of a favourable change in the price of the underlying asset.
A no-penalty CD — also called a liquid CD — is like a traditional CD through which you lock in a deposit for a guaranteed rate of return over a stated period of time, but with the flexibility ...
Today's rates on certificates of deposits are falling from the year's historic highs, but you can still punch up your savings with fixed rates paying out 10 times the 0.41% national average of ...
Strike price labeled on the graph of a call option.To the right, the option is in-the-money, and to the left, it is out-of-the-money. In finance, the strike price (or exercise price) of an option is a fixed price at which the owner of the option can buy (in the case of a call), or sell (in the case of a put), the underlying security or commodity.
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