Options have a unique set of terminology. Define the following terms:
(1) Call option
(2) Put option
(3) Strike price or exercise price
(4) Expiration date
(5) Exercise value
(6) Option price
(7) Time value
(8) Covered option
(9) Naked option
(10) In-the-money call
(11) Out-of-the-money call
Assume that you have just been hired as a financial analyst by Triple Trice Inc., a mid-sized California company that specializes in creating high-fashion clothing. Because no one at Triple Trice is familiar with the basics of financial options, you have been asked to prepare a brief report that the firm?s executives can use to gain at least a cursory understanding of the topic.
This question was answered on: Jul 11, 2017
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