I'd like that post, but it is kind of an inside joke and a bit distracting. He has a valid concern. He should really call that number and ask people...REAL people. Why is everyone so afraid to call the sources that could give them the best and most accurate information. Oi.
Eww Gawd... Shame on me *again*..... I really should be trading, but I looked again at Question 3, and it's a perfectly good question -- I had misread it initially to give the choice between the sale of two different puts ($2,$3??) -- and such a difference either comes from distance-from-market (the 'strike'), or from distance-in-time (the expiration). But there was no dual sell-puts answer. And not to answer *directly*, but selling puts is a fine, fine method by which to enter long market positions that you had intended to enter regardless. Just sayin'...... NOW I'm going back to work.....
1) C, you get the call premium and $5 if you are assigned 2) A, keeps the premium 3) C, all you pay to keep price below $20 is $1= cheapest
It is indeed a noble cause. You could probably get KCG, Citadel, or similar firm that pays for order flow to provide funding for such education in your school. After all, they need more blood to feast upon educated market participants.
C,C,D.. but the #2 C isn't going to happen... would be nice... but not likely. That said though... When I was trading German Gov Bond options, some guy forgot to manually exercise (no auto ex. possible) his longs in time. We made about 300k on it. I reckon he lost about 25+ mln... So I guess, yeah.. people can also mark the wrong ones and exercise the wrong options...
A terribly worded question that leaves you to assume what "a desirable stock purchase price" is. A) No. It might be easier to just wait for a paycheck. B) No. Highly speculative and will probably expire wortheless AND leave you with a more expensive stock to buy. C) Maybe. Assumes you are a reasonable person that will accept market price at anytime. Why are we doing this hedging exercise then? D) No. Again could expire worthless and still produce a more expensive stock. So, C. But the should have worded it: "to lock in the current market price". That is straight out of exchange marketing vocabulary. Obviously, what is desirable is the cheapest price possible for the stock but the equivalent low strike call would not necessitate the use of options. The easy money really is in trading... education!