Index put options definition keen


Index put options definition keen


The profit potential for long index call options is unlimited, while the risk is limitedWhat is an Index Option. Just like an equity call option, an index call option is the right to buy the underlying index. And just like an equity put option, an index put option is the right to sell the underlying index. In other words, an index option is a security that allows the owner to buy or sell an index at a specified price by a specified date.

For example, in a call, an investor may buy the right to an index on or before the expiration date at a certain strike price. Because physical delivery is not possible, when a stock index option is exercised, the delivery is the cash value of the strike price. See also: Exchange-traded fund, Index fund. index option. A call option or put option with a specific index as the underlying asset. Please help improve this article by adding citations to reliable sources.

Unsourced material may be challenged and removed. (November 2015) ( Learn how and when to remove this template message)In finance, a put or put option is a stock market device which gives the owner of a index put options definition keen the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

An equity index option is a security which is intangible and whose underlying instrument is composed of equities: an equity index.




Index put options definition keen

Index put options definition keen

Index put options definition keen



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