Posted by R. MAK. on September 2, 2009 ·
A covered call is referred to as that financial market transaction in which the corresponding amount of the underlying instrument is owned by the seller of call options, such as shares of a stock or other securities. The strategy is often referred to as a “buy-write” strategy, if the trader buys the underlying instrument at the same time as he…
Posted by R. MAK. on August 14, 2009 ·
Barrier options are path-dependent exotics that are identical in some ways to ordinary options. There are put and call, as well as there are some European and American varieties. But if the underlier reaches a predetermined level (barrier) then…
Posted by R. MAK. on August 13, 2009 ·
Warrants have identical characteristics to that of other equity derivatives, such as options.The parameters of warrant, such as exercise price, are fixed shortly after the issue of the bond. If the trader is dealing with warrants, then it is important that he has to consider…
Posted by R. MAK. on August 12, 2009 ·
Here in this article I have explained the put option by giving you an example of the put option.It is believed by a buyer that price of a stock will decrease. He will pay a premium which he will never get back, unless…
Posted by R. MAK. on August 10, 2009 ·
A financial contract between two parties i.e. the buyer and the seller of this type of option, is referred to as a call option. It is the option to buy shares of stock at a specified time in the future. Usually it is simply labeled a “call”. In call option, the buyer of the option has the right, but it is not the obligation to buy an agreed quantity of a particular commodity or financial instrument (the underlying instrument) from the seller of the option at…
