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Its tools include OptionStation Pro, which lets you build and analyze option strategies, charting apps and other screening tools. You can also code your own trading strategies and then automate ...
It’s the price at which you can buy or sell.
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.
Here the price of the option is its discounted expected value; see risk neutrality and rational pricing. The technique applied then, is (1) to generate a large number of possible, but random, price paths for the underlying (or underlyings) via simulation, and (2) to then calculate the associated exercise value (i.e. "payoff") of the option for ...
For example, the Apple mini-options symbol is AAPL7. [6] Examples: AAPL7 131101C00470000. The above symbol represents a mini call option (10 shares) on AAPL, with a strike price of $470, expiring on Nov 1, 2013. AAPL 131101C00470000. The above symbol represents the standard call option (100 shares), with the same strike and expiration date.
The option Greeks are key metrics that you need to know if you’re trading options. ... in the option price if the risk-free interest rate changes by 1 percentage point. A rising rate raises the ...
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