Please give me simply explaination why people said that "Only options writer requires to maintain margin requirement and mark-to-market" (people're discussing about the difference between option & futures)
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Please give me simply explaination why people said that "Only options writer requires to maintain margin requirement and mark-to-market" (people're discussing about the difference between option & futures)
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- . Answer the following in a couple of sentences. d) Compare and contrast options with futures e) Compare swaps with forwards. Answer the following in a couple of sentences c) Compare and contrast forwards with futures. d) Compare and contrast options with futures.Carefully compare and discuss the concept of margins in forwards/futures markets and options markets. Explain why most brokers would require higher margins for short positions than for long positions.
- What is a REIT What are the advantages and disadvantages of REITs List and Describe the different types of REITs What is an OPTION Differentiate between a PUT and a CALL OPTION List and Describe the different types of OPTIONS What is a REPO What are the advantages and disadvantages of REPOS List and Describe the different types of REPOS What is the formula for calculating REPO RATE Define (a) Market Risk (b) Interest Rate Risk (c) Commodity Risk (d) Currency RiskDoes at the money ,in the money, out of the money is used to tell about position of strike price in the market when buy or sell the option only (judge by comparing srike price and the spot price in market at that moment,Is it used to tell status of the option on expiration date by comparing srike price and the market price at expiration date or not, if not please explain to me by using some example to explain it.in options trading, margin must be posted by______
- Question 3: What are the pros and cons of using options traded in the over-the-counter market and in an exchange for hedging? Plz explain itDefine the terms, or give short explanations. -futures contract/option -hedge -hedger -hybrid -law of one price -market efficiencyEquating theoretical option price and the market option price, we can solve for implied indicators. Which is appropriate to be used as a quote for option? a) Implied strike price b) Implied volatility c) Implied risk-free rate d) None of the above
- "Financial Derivative and Risk Management" Why are the probabilities of stock price movements not used in the Binomial Option Pricing Model for calculating an option's price? What variables are used? Explain in detail with an example.1. (a) Describe the defining features of call and put options and explain intuitively using an example why call and put options are more valuable the greater their underlying stock's variability.a. Explain the covered call options strategy b. Graphically show a covered call options strategy, including payoff. Explain why an investor mayuse this option strategy.c. Using put-call parity, explain the shape of the payoff line (in part (a) of this question). Whatoption position does it look like and why?