A contract gives the right to the buyer or holder to buy an asset in predetermin
ID: 373927 • Letter: A
Question
A contract gives the right to the buyer or holder to buy an asset in predetermined price or at a pridetermined time.This is called call option.
Call option is used to create multiple strategies like
1 .Regular Strategy/Strategy
2.Covered Strategy
The covered strategy is an options strategy where an investor holds a long position in the asset and sells calls option at the same amount of the stock, then waits for the option contract to exercise or expire.
On the other hand, Regular strategy where an invester sells an call option.The invester believe the underlying asset will be neutral to bear at the short term.
Explanation / Answer
Difference makes strategy and covered strategy? Difference makes strategy and covered strategy?Related Questions
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