Synthetic Stock Definition Synthetic stock is created when a holder of a call and put option simulates the stock when that holder buys and sells the options accordingly. Without participating in the market the holder can stand to make a gain. Then, they can invest in the stock as long as the expiration has not
Tag: put option
Stock Options Definition A stock option is a financial instrument that gives its holder the right but not the obligation to buy or sell a security for a set price on or before a set date. Stock options are traded on financial bonuses. A stock option contract typically consists of no less than 100 options.
See Also: Call Option Synthetic Stock Future Value Intrinsic Value – Stock Options Purchase Option Put Option Definition A put option is the right for an investor to sell an asset at a pre-determined exercise price on a certain date known as the put option expiration. Put Option Explained A put option gives a holder
See Also: Finance Beta Definition Black Sholes Option Model Binomial Options Pricing Model Employee Stock Ownership Plan (ESOP) Subscription (Preemptive) Rights Intrinsic Value of Stock Options The intrinsic value of stock options is one of the factors – along with time value – that contribute to the value of a stock option. For an in-the-money