There are many different types of option contract, whether in exercising ability or difference in values , And two types will be discussing in this presentation. Firstly, the American style of option contract, gives you the flexibility in using it and doing the transaction at any point of time up to the expiration day. Secondly, the European style of option contract, allows the investor to use the option only during the expiration day.And what really important is that all the options gives the investor the option but not the commitment to buy in case of a call or sell in a case of a put.
Finally, the American option will be always worth at least what a European option is worth. There is a difference between a long call and long put and short call and short put. first of all, a long call, an investor who believes that the stock’s will rise might buy the right to buy rather than just buying the stock itself.He would have no commitment to buy the stock, only the right to use it until the expiration date. If the price of the stock at the expiration day is over the exercise price by more than the premium price paid he will have profit. And if the price of the stock at the expiration is lower than the exercise price, the call contract will expire of no value, and only will lose the amount of the premium. The investor might buy the option instead of shares, because for the same amount of money he can control leverage a much larger number of shares.
While, a long put, an investor who believes that the price of the stock will fall can buy the right to sell the stock at a fixed price. He will be under no commitment to sell the stock, but has the right to use it until the expiration date. If the stock price at expiration is lower the exercise price by more than the premium paid he will have profit. If the stock price at expiration is over the exercise price, the put contract expire worthless and only lose the premium paid.
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
Essays
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admissions
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Reviews
Editing Support
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
Reviews
Revision Support
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.