Put option, Financial Management

Put Option

This is a right which is granted in exchange for an agreed-upon sum to sell property. Options are mostly used frequently in securities transactions it also used stock options used as incentive compensation for key managers.  If the right is not exercised within the specified time period it expires and the holder forfeits the money. Instead of exercising options, most investors prefer to purchase and sell them in the open market before expiration cashing in on rise in trading value. The most interesting features of trading in options are the amount of leverage option buyers enjoy. Buyers put up relatively small amount of money to handle a largest amount of common shares potentially leveraging sizable profits.

Posted Date: 10/16/2012 8:04:53 AM | Location : United States







Related Discussions:- Put option, Assignment Help, Ask Question on Put option, Get Answer, Expert's Help, Put option Discussions

Write discussion on Put option
Your posts are moderated
Related Questions
Liabilities The company must take into account the nature of its liabilities as well as its solvency position. Cash Flows: Besides the investment yields, money flows as paid

calculation of depreciation of long lived assets in times of inflation

The Mountain Fresh Company had earnings per share (EPS) of $6.32 in 2006 and $11.48 in 2011.  The company pays out 30 percent of its earnings as dividends per share (DPS), and the

name the concept which increases the return on equity shares by changing the capital structure of the co.

Determine the advantages of explicit cost Explicit cost of an interest bearing debt will be the discount rate which equates present value of the contractual future payments of

Which formula would you use to solve for the payment needed for a car loan if you know the interest rate, length of the loan, and the borrowed amount?  Describe. To solve for k

Keys Printing plans to issue a $1,000 par value, 10-year noncallable bond with a 5.00% coupon, paid semiannually. It should sell at par. The company''''s marginal tax rate is 40.00

formula and explanation for Gordon''s dividend capitalization method

identify five stakeholder groups and breifly explain their financil and other objectives

Accounting and Financial Management 1. What is over capitalization? How do we know over capitalization has occurred? 2. Explain permanent and temporary working capital. 3