Management and Organizational Studies 1021A/B Lecture Notes - Lecture 9: Strike Price, Call Option, Fixed Price

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1021A/B
• Professor: Michael Aloisio

Document Summary

1. expand investment opp trading option: lower cost, increase leverage exam q. 60 bugs can buy one share same control of the one share through other option. 2 major types of stock call and put. Call option give you the option in choice not obligation you don"t have to but you can to buy a share stock in an accept price by a certain days. Call the person you have to sell me in a specific price-- deal. You have a right to buy or sell , from another shareholder not new shareholders deal with us nothing to deal with company. Put you have the choice but not the obligation to sell a stock at a certain price by a certain days. You know what a price you are able to buy. American best option exercise your option any point up to expiration date gives u most choice any point u want whenever.