After exercising a put option, can I still hold my option contract in order to sell it at a lower price?

July 8, 2024 No Comments

A: Once a put option contract has been exercised, that contract does not exist anymore. A put option grants you the right to sell a stock at a specified price at a specific time. The holder of a put option expects the price of the

Are We In A Bull Market Or A Bear Market?

July 8, 2024 No Comments

A: The Wall Street Journal and other media outlets often use 20% thresholds to label traditional uptrends and downtrends, stating a new bear market has begun when an index or other security falls 20% off its peak. Conversely, they announce the start of a new bull market when an index

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July 8, 2024 No Comments

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Can a stop-loss order protect a short sale?

July 8, 2024 No Comments

A: The quick and simple answer to this question is yes. The major difference between a stop-loss order used by an investor who holds a short sale and one used by an investor with a long position is the direction of the stop’s execution. The individual with

Can an option be exercised on the expiration date?

July 8, 2024 No Comments

A: The use of options has increased dramatically over the years as a way to profit from or hedge against the volatile movements of stock prices. Not only can options be traded with stock as the underlying asset, they are also traded on foreign currency,

Do I own a stock on the trade date or settlement date?

July 8, 2024 No Comments

A: When buying shares, there are two key dates involved in the transaction. First is the trade date, which marks the date the buy order is executed in the market or exchange. Second is the settlement date, which marks the date and time the transfer of shares is

Does the seller of an option determine the details of the option contract?

July 8, 2024 No Comments

A: The quick answer is yes and no. It all depends on where the option is traded. An option contract is an agreement between the buyer and the seller of the contract to buy or sell an underlying asset at a certain price, amount and

Does the seller of an option determine the details of the option contract?

June 30, 2024 No Comments

Does the seller of an option determine the details of the option contract?

July 7, 2024 No Comments

How accurate is the forward rate in predicting interest rates?

July 8, 2024 No Comments

A: Forward rates are extremely limited predictors of actual interest rates. This isn’t particularly surprising, given the multitude of determinant factors for interest rates or the nature and use of forward rates. The imperfections of forward rate forecasts tend to be most glaring before the

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