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Derivatives

Equity Options

They give the holder the right, but not the obligation, to buy or sell the underlying shares at a specific price on or before the expiration date.

In the world of finance, there exists a powerful tool known as equity options. These derivatives are based on stocks or shares, and grant the holder the power to buy or sell the underlying assets at a predetermined price on or before a specified date. This unique feature of options provides flexibility and opportunity for investors to mitigate risk and potentially earn profits.

Extrinsic Value

The intrinsic value is the inherent value of an option determined by its underlying asset's current price. This means that the extrinsic value is influenced by factors such a...

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Options Contracts

This allows investors to speculate on the future price movements of an asset without committing to a purchase. An option contract is a vital financial tool that grants inves...

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Equity Options

They give the holder the right, but not the obligation, to buy or sell the underlying shares at a specific price on or before the expiration date. In the world of finance, t...

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Forward Contract

This type of contract is used to manage business risks, such as fluctuations in commodity prices or foreign currency exchange rates. A forward contract is a legally binding a...

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