Wednesday, May 15, 2019
Call vs Put Options Essay Example | Topics and Well Written Essays - 250 words
Call vs Put Options - Essay ExampleAgain, they be guaranteed of no losses. Financial options are perhaps a better way to attract investors in stock companies and encourage them to invest. However, I compute because they are not ready to take risks with their shares they could be at a disadvantage if their stocks are bought or sold at higher values other than the agreed upon values.In my opinion, financial options can be good or bad. The buying contracts reduce risks in the event of a negative outcome. The buyer is moderately protected while the trader increases gains and reduces losses. This is especially important given the volatile nature of the stock commercialize as affected by issues such as fluctuating interest rates, exchange rates, and other mart forces. Perhaps a major disadvantage of the two options is losing part of, or the whole contract price. Again, at that place is the risk of broker insolvency or non-fulfillment of contractual
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