10
Call and Put Options
LEARNING OBJECTIVES
After completing this chapter, you will be able to answer the following questions:
- What are call options?
- What is meant by the in-the-money value and the time value of a call option?
- Would an American call option be exercised before maturity?
- When would a trader buy or write a call option?
- What are put options?
- What is meant by the in-the-money value and the time value of a put option?
- Would an American put option be exercised before maturity?
- When would a trader buy or write a put option?
In Chapter 9, the basics of options, options terminologies, and the procedure to trade options were discussed. The details of what call and put options are and how these options derive value are discussed in this ...
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