Stocks & securities

Stocks & securities

Stocks trades, exchanges and tools etc.

Industry: Financial services; Investment

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Stocks & securities

Put/Call Parity

Financial services; Stocks & securities

Identified by Hans Stoll in 1969, the Put/Call Parity refers to the idea of an efficient market. What he defined was that the relationship between European puts and calls with the same expiration and ...

Bull Call Spread

Financial services; Stocks & securities

This strategy involves the purchasing and selling of call options. Investors who utilize this strategy anticipate the marketable asset to increase in value, but not to an extreme. The Strategy: The ...

premium

Financial services; Stocks & securities

In terms of purchasing derivatives, it is the cost to purchase the option, furutre/forward contracts. This premium is a one time front-load fee paid to the broker who sold you the derivative. To ...

Option Writer

Financial services; Stocks & securities

The writer of an option, whether it be a call or put, receives the premium when the option is sold. However this option writer has the OBLIGATION to deliver, or take the delivery of, the underlying ...

put option

Financial services; Stocks & securities

A put option is an investment strategy where the investor bets the underlying asset's (stock, bond, commodity) market value will fall. The put option gives the investor THE OPTION to sell a specified ...

call option

Financial services; Stocks & securities

A call option is an investment strategy, where the buyer of the option is betting that the underlying value of the asset (stock, bond, commodity) is going to rise. In this investment, the call option ...