The following points highlight the thirteen main aspects of options. The aspects are: 1. Calendar Spread 2. Calculation of Premium on Options 3. Intrinsic Value of an Option 4. In the Money, at the Money and Out of the Money Options 5. Time Value of Option 6. Types of Covered Call 7. Put-Call Ratio 8. Open Market 9. Liquidating Option [...]
A call option give the buyer the right but not the obligation to buy a given quantity of the underlying asset, a given price known as 'exercise price' or 'strike price' on or before a given future date called the 'maturity date' or 'expiry date'. A call option gives the buyer the right to buy a fixed number of shares/commodities [...]
The put option gives the buyer the right, but not the obligation, to sell a given quantity of the underlying asset at a given price on or before a given date. The put option gives the buyer the right to sell the underlying asset at the exercise price up to the date of the contract. The seller of put option [...]