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Put and call strategy in call option 81
What is a Call Option. This contrasts to a put option, which is the right to sell the underlying stock. When do you Buy Call Options. DescriptionAn strategt who buys or owns stock and writes call options in the equivalent amount can ztrategy premium income without taking on additional risk. I have been trying out this strategy for couple of weeks. Expiration is ccall one year.
The put option with the same exercise price and same expiration date is priced at USD 2. Assume that the annual risk-free rate is 10% and that there is a risk-free bond paying the risk-free rate that can be shorted costlessly. There are no transaction costs. This book or any part thereof should not be copied, reproduced, duplicated, sold, resold or exploited for any commercial purposes. Furthermore, the book in its entirety or any part cannot be stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise.
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