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6 pages/≈1650 words
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Accounting, Finance, SPSS
English (U.S.)
MS Word
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Call options Accounting, Finance, SPSS Essay Research (Essay Sample)


The task was a mini case assignment to answer questions on call options.


Call Options
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Question one
A financial option is an agreement that gives the buyer the right to purchase or sell a basic asset or instrument at a special price before or on a particular date, depending on the type of option (Broadie & Detemple, 1995). The single most vital characteristic of a financial option is that all options are fixed. None of the options can alter under any circumstance during its useful life.
Question two
A call option is to purchase or sell an asset at a particular price on or before a specified date.
A put option is an agreement that gives its holder the right to trade some equity shares at a strike price, before its expiry date.
An exercise price is a cost per share at which the owner of an option can purchase or sell the underlying asset

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