Options Trading Tutorial

Kindly clarify me about Option premium, strike price, intrinsic value, and par value of a stock with example.?

Kindly clarify me about Option premium, strike price, intrinsic value, and par value of a stock with example.

Public Comments

  1. The option premium is the price you pay for the privilege, but without the obligation to buy (call option) or sell (put option) a stock or commodity at a certain price by a designated date in the future. The strike price is the price you actually pay for that stock or commodity. It may be higher or lower than the current market price. In a call if the stock is trading at higher price than your strike price, then your option i
Powered by Yahoo! Answers