Today news
About the same in other media
Your Money: Why option premiums can never be negative
Reading now: 806
By Sunil Parameswaran
Traders who are new to options, may wonder why they have to pay a premium to buy an option, considering the fact that a premium is not required to buy a futures contract. The answer lies in the fact that the former is a contingent contract, while the latter is a commitment contract. In the case of a futures contract, once the position is taken, both the long and the short face the spectre of a negative cash flow.
However, in the case of options, once the contract is entered
Read more on financialexpress.comAbout this in other media
Your Money: Go for floater funds, floating rate bonds or market-linked debentures financialexpress.com /2 years ago
Your Money: Types of mutual funds and the risks they carry financialexpress.com /2 years ago
Crypto scams: How to spot, avoid and protect your money while investing in cryptocurrencies financialexpress.com /2 years ago
Show more
The website fvbb.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
