What is an options intrinsic value

Assignment Help Finance Basics

Reference no: EM131305262

1. What is an option premium? What is an option's intrinsic value? What other factors, besides intrinsic value, can affect the size of an option premium?

2. What is the Black-Scholes model? Who are the quants? How can investors use options to manage risk?

3. Why might someone buy an option on a futures contract derived from an underlying asset rather than buy an option on the underlying asset itself?

Reference no: EM131305262

Questions Cloud

Are onion farmers as a group better off because of the ban : Is it likely that banning trading futures contracts in onions reduced the volatility in onion prices? Are onion farmers as a group better off because of the ban?

Define call option and put option and strike price : How do the rights and obligations of options buyers and sellers differ from the rights and obligations of futures buyers and sellers?

Identify and describe social psychological phenomena : Define stress, stressors, and coping strategies, and contemplate their relationship to health and wellness.Identify and describe social psychological phenomena.Describe adult relationships, lifestyles, and issues of parenting and longevity.Identify g..

Determine whether the stereotype is accurate : Identify a stereotype that describes one group of college students and list one characteristic that presumably makes them different from other students.

What is an options intrinsic value : What is an option premium? What is an option's intrinsic value? What other factors, besides intrinsic value, can affect the size of an option premium?

Describe the design for a between subjects experiment : Identify another factor (a confounding variable) that might explain why some employees participated in the fitness program and why those same employees have fewer sick days.

What does it mean that equities may have rallied too much : What are equities?- What does it mean that "equities may have rallied too much"?- If equities have rallied too much, why would buying puts be a good idea?

Discuss about the humor and persuasion : Discuss about the Humor and Persuasion .our paper should delineate three or more aspects of the effectiveness of humor and indicate at least three risks of attempting to use humor in persuasion. Your paper should include previous theories of persua..

Compare the pros and cons of buying a put option : Compare the pros and cons of buying a put option versus selling a stock if you are worried that the price of the stock might decline.

User Account

All Pages