Options Basics
What is an option?
Before moving to more complex aspects, let's define, what we are working with.
For instance, suppose that you have an option to buy 100 shares of Nestle at $50 per share before a certain date.
If the stock price rises to $100 before the corresponding date, you could choose to exercise the option and purchase the shares at the lower price of $50, making a profit of $5000 ($50 per share x 100 shares).
However, if price falls, for example, to $25 per share, you can let your option expire, by not using your right, and lose only money for buying the option.
What kinds of options are exist?
Speaking about time, when we could exercise options, they could be divided into two categories :
Additionally, by the way we can use option, they could be divided into two next categories:
We are going to dive into them deeper into further chapters.
Takk for tilbakemeldingene dine!
Spør AI
Spør AI
Spør om hva du vil, eller prøv ett av de foreslåtte spørsmålene for å starte chatten vår
Still meg spørsmål om dette emnet
Oppsummer dette kapittelet
Vis eksempler fra virkeligheten
Awesome!
Completion rate improved to 7.14Options Basics
Sveip for å vise menyen
What is an option?
Before moving to more complex aspects, let's define, what we are working with.
For instance, suppose that you have an option to buy 100 shares of Nestle at $50 per share before a certain date.
If the stock price rises to $100 before the corresponding date, you could choose to exercise the option and purchase the shares at the lower price of $50, making a profit of $5000 ($50 per share x 100 shares).
However, if price falls, for example, to $25 per share, you can let your option expire, by not using your right, and lose only money for buying the option.
What kinds of options are exist?
Speaking about time, when we could exercise options, they could be divided into two categories :
Additionally, by the way we can use option, they could be divided into two next categories:
We are going to dive into them deeper into further chapters.
Takk for tilbakemeldingene dine!
