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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.

Derivative

These instruments can be used for hedging risks or for speculation. Derivatives, also referred to as financial derivatives, are contracts that derive their worth from the un...

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Futures Contracts

This asset can be a commodity, stock, currency, or any other financial instrument. A fundamental concept in finance, Futures Contracts are powerful tools used to manage ris...

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Out-of-the-money

An option that would result in a loss upon immediate exercise is known as an out-of-the-money option. Specifically, a Call option is considered out-of-the-money when the cur...

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Call Option

A call option grants the holder the right, but not the obligation, to purchase a stock at a predetermined price during a specific timeframe. It is commonly used by investors...

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