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
Q. What is Debentures? Debentures a debenture is an instrument issued by the company acknowledge its debts to its holders . it is also an important method of raising long terms

Modified duration is used to determine the percentage change in the bond's prices for a 100 basis point (1%) change in the yield. The underlying assumption is tha

What is Inherent risk Susceptibility  of  an  account  balance  or  class  of  transactions  to  material  misstatement either  individually  or  when  aggregated  with misstat

Your broker calls to offer you the investment opportunity of a lifetime, the chance to invest in mortgage-backed securities. The broker explains that these securities are entitled

1. Review and analyse financial data for the last year to establish areas which have generated a profit or loss in your organisation. 2. Conduct a research to review reasons for

It is also important to compare the returns from the equity stock and the bond to determine the profitability of both investments. We have seen above that the div

Question 1: "The governance of modern states demands that a relentless struggle be waged against the scourge of corruption." Discuss. Question 2: Explain clearly how th

Describe the benefits of Wealth maximisation criterion Value of an asset must be viewed in terms of the benefits it can produce. Worth of a course of action can similarly be ju

Issuance of securities  : Security issues by companies are a novel and common way of raising funds that in turn help realize their growth aspirations. It is therefore necessary

What is the Investment evaluation Investment evaluation the primary purpose of measuring the cost of capital is its use as a financial standard evaluating investment projects