Posted by Batool on May 2, 2011 ·
If the warrant investors are attentive and cautious about the movements of market, as they have a risky nature, warrants can offer a neat addition to an investor’s portfolio. Being an unused alternative for investment, it can offer small investors the opportunity for diversity without the need for having to go against the giants.
Posted by Batool on December 28, 2009 ·
Some important terms being used in FOREX trading are precisely defined below
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 September 1, 2009 ·
A collar is a name given to an investment strategy that uses options in order to limit the range of possible positive or negative returns on an investment in an asset to a specific range. For having this done, an investor by whom an asset is owned simultaneously buys a put option and sells (writes) a call option on the same asset. It is needed that…
Posted by R. MAK. on August 27, 2009 ·
The ratio-spread is a name given to a strategy in options trading and that strategy involves buying some number of options and selling a larger number of other options of the same underlying market and (usually) the same expiration date, but…
Posted by R. MAK. on August 19, 2009 ·
Mountain ranges are those exotic options that are originally marketed by Societe Generale in 1998. By basing the value of the option on several underlying assets, and also by setting a time frame for the option, the options combine the characteristics of basket options and range options. Further the mountain range options are subdivided into [...]
Posted by R. MAK. on August 18, 2009 ·
A type of exotic options with path dependency, among many other kind of options are referred to as the Lookback options. The payoff depends on the optimal (maximum or minimum) underlying asset’s price that occur over the life of the option. By this option the holder is allowed to…
Posted by R. MAK. on August 15, 2009 ·
In finance, a binary option is a name given to a type of option where the payoff is either some fixed amount of some asset or nothing at all. There are two main types of binary options and these are…
Posted by R. MAK. on August 13, 2009 ·
There are various methods (models) of evaluation that are available in order to value warrants theoretically, in these models the Black-Scholes evaluation model is also included. However, it is important for the investors to…
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…
