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A very brief introduction to options

Monday, August 8, 2016 - 05:50
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Apple stock soared after its earnings were announced, trading at US$104.21 by the end of the week, up 7 per cent. The US$97.50 options are now "in the money".

A NIL-PAID right can be thought of as being akin to a financial option.

Options are contracts that give you the right, but not the obligation, to buy ("call option") or sell ("put option") an underlying asset at a certain price ("strike price") at a date that can be fixed ("European-style