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What Are Stock Options
Beginning of paper
You buy or trade stocks, bonds and mutual funds. Some investors use options on stocks or cash indexes to protect and insure the value of their portfolios. A major advantage of options is their flexibility.
You can protect stock holdings from a decline in market price
You can increase income against current stock hold .... Middle of paper
.... is the right, but not the obligation, to buy or sell a stock (or other security) for a specified price on or before a specific date. A call is the right to buy the stock, while a put is the right to sell the stock. The person who purchases an option, whether it is a put or a call, is the option "buyer." the person who originally sells the put or call is the option "seller."
Options are contracts in which the terms of the contract are standar ....
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Number of words: 1328
Number of pages: 5 (approx. 250 words per double-spaced page)
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