July 2009
Intermediate to advanced
600 pages
19h 50m
English
An option provides the holder with the right to buy or sell a specified quantity of an underlying asset at a fixed price (called a strike price or an exercise price) at or before the expiration date of the option. Because it is a right and not an obligation, the holder can choose not to exercise the right and allow the option to expire. There are two types of options—call options and put options.
A call option gives the option buyer the right to buy the underlying asset at a fixed price, called the strike or the exercise price, at any time prior to the expiration date of the option: The buyer pays a price for this right. If at expiration the value of the asset is less than the ...
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