Question
Please point out the error and provide an explanation 2.Both buy calls and sell puts are bullish strategies, independent of the strike price. Buy buy
Please point out the error and provide an explanation
2.Both buy calls and sell puts are bullish strategies, independent of the strike price. Buy buy right loss is limited, but the largest Possible loss of 100%; Put options are risky, but most likely remunerative.
3. Other things being equal, in-price (ITM) contracts are more expensive than out-of-price (OTM) contracts, so buying out-of-price contracts is better.
4. Assuming an exchange rate of 1.1 between the euro and the US dollar, all other things being equal, the European option price would be higher than the US option price
7. According to Put Call Parity, consider the same subject matter, the same maturity date, and the same strike price, when the underlying asset price increases by one order The put price and put price must move in the opposite direction.
8. A securities firm issued a warrant advertising that declared, "Fight small for great hope." The first half of the sentence points out that the warrant is high bar The expected return of a warrant is high.
10.In the case of trader Nick Leeson's collapse of the UK bank Barings, he heavily used the strategy of simultaneously selling "puts" and "puts" to earn a premium when the index consolidated. However, the massive losses caused by the terrorist attacks in the stock market also highlighted the market's uncertainty.
11. Du Zonghui, former president of Uni-President Securities, lost $600 million in 2011 by buying too much of the Alligator Spread's option trading strategy through risky speculation in derivatives.
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Error in sentence 2 The error in this sentence is the incorrect use of the terms buy call and sell put It should be buy call and buy put as these are ...Get Instant Access to Expert-Tailored Solutions
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