Stock options puts and calls

Stock options puts and calls - Stock options, puts and...

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Stock options, puts and calls To make sure you and I both understand these terms (thanks to the student who helped me get them straight in class on 2/24/2010!), here is a little primer on stock options, puts and calls. As your well informed student colleague stated: 1) a Put is an right (but not an obligation; more on that below) to sell a stock (in this case) on or before a specified time at a particular price (called the trigger price). So if you own a share of Google Stock, I could pay you a fee to have a put on that share of google, to force you to sell that share at a certain price we agree on by a certain date we agree on; usually I can make you sell the share at that price anytime from when we make the agreement up to the date specified in the agreement, which is the expiration of the agreement. The seller of the put gets a fee from the buyer for the put. If the seller owns the share, the buyer will force the seller to sell the share if the current price at or before the expiration date is
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This note was uploaded on 10/16/2010 for the course SOC 149 taught by Professor Parker during the Spring '10 term at UC Riverside.

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Stock options puts and calls - Stock options, puts and...

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