Answer Posted / bushi
call option is the option that gives its holder the right to
buy a certain underlying asset at some fixed price called
strike/exercise price determine by the maker of the option
and at some specified date called expiration or maturity date.
The option holder have to pay an up-front price to buy the
option called Premium.
Important thing is that the option holder not necessarily
have to exercise the option, Its the choice of the option
holder as to whether to exercise the option or not depending
on the market situation.However if the option holder do not
exercise it, he would only be having a net loss equal to the
amount of premium.
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
What is the monetary policy of RBI and what are the various instruments used to control it?
Do you know how SLR is determined?
what are the main component of bailout funds? what are the limitations of bailout fund?
What are Preference Shares?
Describe your involvement in re-engineering down-sizing or cost containment processes?
Can you tell about PPF Account?
What Does It Cost To File For Bankruptcy?
What is the FDI limit in Insurance sector?
Tell us about your latest qualification?
What is CRR? What is the current CRR?
What is the difference between charge card and credit card?
When will the next Olympics take place and where?
What is the capital adequacy ratio?
What are the latest changes taking place in the economy due to demonetization?
Give the difference between cheques and demand draft?
