3/3/2023 0 Comments Fman hot directory![]() ![]() It is the best option for a trader who wants to realize a profit or loss (the difference between the purchase price and the current option price) on the contract. If a trader or an options’ writer exercises the option, they will receive the premium paid when the option is bought by the buyer. ![]() If the trader does not want to exercise the option, they can let the option expire worthless and lose any premiums paid at the start of the contract. When a trader exercises an option, they are buying or selling the underlying asset at the strike price agreed in the options contract. Traders can exercise or close the trade before or on the expiration date by taking an offsetting position in order to realize any gains or losses on the derivative. Options have a limited life, which means that they are only valid until the expiration date.
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