Financial Options
Not what you're looking for?
Explain what options are and some of their uses. What is the difference between financial options and other kinds of options?
What are real options, and what are they used for?
Purchase this Solution
Solution Summary
The solution is very easy to understand and concise. It is an excellent response for students who want to understand the concepts and then use the same concepts to solve similar problems in the future. Overall, an excellent response. The solution provides the necessary steps which are easy to follow.
Solution Preview
In finance, an option is a contract between a buyer and a seller that gives the buyer the right-but not the obligation-to buy or to sell a particular asset at a later day at an agreed price. In return, the seller collects a payment from the buyer. A call option gives the buyer the right to buy the underlying asset; a put option gives the buyer of the option the right to sell the underlying asset. If the buyer chooses to exercise this right, the seller is obliged to sell or buy the asset at the agreed price. The buyer may choose not to exercise the right and let it expire.
The theoretical value of an option can be evaluated according to ...
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance
These questions will test you on your knowledge of finance.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Introduction to Finance
This quiz test introductory finance topics.