Option Contract

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.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more