What types of options positions create unlimited liability?

June 30, 2024 No Comments

A: Selling naked calls creates unlimited liability. Therefore, these types of option strategies are considered appropriate for sophisticated traders with proper risk management and discipline due to the limitless losses. Selling calls is typically done against existing stock holdings in an attempt to create income

What types of options positions create unlimited liability?

July 7, 2024 No Comments

When did the U.S. start using paper money?

June 30, 2024 No Comments

A: On February 3, 1690, the Massachusetts Bay Colony was said to have issued the first paper money in the U.S. in order to pay for military action against Canada during King William’s War. Massachusetts was a truly pioneering colony when it came to money, as

When did the U.S. start using paper money?

July 7, 2024 No Comments

When did the U.S. start using paper money?

July 7, 2024 No Comments

When is a put option considered to be “in the money”?

June 30, 2024 No Comments

A: An option contract is a financial derivative that represents a holder who buys a contract sold by a writer. The moneyness of an option describes a situation that relates the strike price of a derivative to the price of the derivative’s underlying security. A

When is a put option considered to be “in the money”?

July 7, 2024 No Comments

When was the first swap agreement and why were swaps created?

June 30, 2024 No Comments

A: Swap agreements originated from agreements created in Great Britain in the 1970s to circumvent foreign exchange controls adopted by the British government. The first swaps were variations on currency swaps. The British government had a policy of taxing foreign exchange transactions that involved the

When was the first swap agreement and why were swaps created?

July 7, 2024 No Comments

Where can I purchase options?

June 30, 2024 No Comments

A: In the United States, all options contracts go through one of several options exchanges. An investor must have an account with a brokerage firm that provides options trading as part of its product offerings. As a brokerage customer, your options orders will be routed

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