Well, slowly but surely I am getting through the material. I enjoyed this chapter on options, I see how if you have the tolerance for the risk and market knowledge and are astute how it could work in your favor for big $. Basically legalized gambling, though. My book actually uses the word "bet".
I missed four questions: 3, 10, 14, 15. Two of the questions (3, 15) were the same, on calculating intrinsic value. I did the calculation correctly, but where i erred was that I did not multiply the answer by the number of lots.
then on a ? about what the most a writer with shares in inventory could stand to gain/lose on a call option. although i calculated the gain correctly, i chose the option of "losses are endless" when in fact, they can actually only lose as much as they paid for the stocks/inventory cost.
finally, if a purchase of a call is made, it is an opening purchase (versus an opening sale, closing sale/purchase).
Liked this chapter. Excited to read #15 tomorrow which is on Put Options (today was Call Options, or options to buy).
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