Gendernomics: Options and Obiters

Black Label Logic

Options within the financial industry are in essence securities that give you certain rights related to other securities. The most common being Call options that give you the right to buy a set amount of an underlying security at a set price known as the strike price, and Put options that give you the right to sell a set amount of an underlying security at a set price. These financial instruments can be used in a variety of ways the most common being hedging risk exposure and taking leveraged positions in the underlying security. The former is quite common among hedge funds, the latter among traders. The underlying basis for options is that the underwriter and the buyer have differing views on how the asset will develop going forward. In the case of a Call option, the option writer thinks the stock will fall and the buyer thinks the stock…

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