Let's say you bought a share @ 500 & if the share price goes beyond 500, you will gain but you are afraid of share price falling as you'll have loss. So for that you bought a OTM put option at a strike price say 480 @ 45. So whenever the share price falls below 480 you will gain coz of putRead more
Let’s say you bought a share @ 500 & if the share price goes beyond 500, you will gain but you are afraid of share price falling as you’ll have loss. So for that you bought a OTM put option at a strike price say 480 @ 45. So whenever the share price falls below 480 you will gain coz of put & whenever share price goes beyond 500 you will gain coz you have the share in your hand. But what about if it remains in b/w 480 – 500, here nobody are going to save you. This is deductible which you have to bear. So now if you look closely the max loss which you will bear will be this deductible amount + put premium which you had paid at the time of purchasing the put option.
Forward price are high indicates that future mein Jo price hone wala hai wo jada hone wala hai yani ki Jo future spot rate hai wo kam hone wala hai as compared with abhi wala jo forward rate hai usse. Wo future spot rate agar kam hoga tabhi to price Jada ayega na So this also indicates underpriced.Read more
Forward price are high indicates that future mein Jo price hone wala hai wo jada hone wala hai yani ki Jo future spot rate hai wo kam hone wala hai as compared with abhi wala jo forward rate hai usse. Wo future spot rate agar kam hoga tabhi to price Jada ayega na So this also indicates underpriced. I hope I am able to communicate myself well!
Here, regulator is captive means that here regulator is making fool to consumer na, he is deceiving to that consumer in hiring to those person in their body
Here, regulator is captive means that here regulator is making fool to consumer na, he is deceiving to that consumer in hiring to those person in their body
Maximum loss in Protective Put
Let's say you bought a share @ 500 & if the share price goes beyond 500, you will gain but you are afraid of share price falling as you'll have loss. So for that you bought a OTM put option at a strike price say 480 @ 45. So whenever the share price falls below 480 you will gain coz of putRead more
Let’s say you bought a share @ 500 & if the share price goes beyond 500, you will gain but you are afraid of share price falling as you’ll have loss. So for that you bought a OTM put option at a strike price say 480 @ 45. So whenever the share price falls below 480 you will gain coz of put & whenever share price goes beyond 500 you will gain coz you have the share in your hand. But what about if it remains in b/w 480 – 500, here nobody are going to save you. This is deductible which you have to bear. So now if you look closely the max loss which you will bear will be this deductible amount + put premium which you had paid at the time of purchasing the put option.
See lessFI- Reading 32 – Example 7
Forward price are high indicates that future mein Jo price hone wala hai wo jada hone wala hai yani ki Jo future spot rate hai wo kam hone wala hai as compared with abhi wala jo forward rate hai usse. Wo future spot rate agar kam hoga tabhi to price Jada ayega na So this also indicates underpriced.Read more
Forward price are high indicates that future mein Jo price hone wala hai wo jada hone wala hai yani ki Jo future spot rate hai wo kam hone wala hai as compared with abhi wala jo forward rate hai usse. Wo future spot rate agar kam hoga tabhi to price Jada ayega na So this also indicates underpriced. I hope I am able to communicate myself well!
See lessEconomics of Regulation
Here, regulator is captive means that here regulator is making fool to consumer na, he is deceiving to that consumer in hiring to those person in their body
Here, regulator is captive means that here regulator is making fool to consumer na, he is deceiving to that consumer in hiring to those person in their body
See less