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As with futures, options may be used to hedge or speculate on the price of the underlying asset. In terms of timing your right to buy or sell, it depends on dll finance "style" of the option. An American option allows holders to exercise the option rights dll finance any time before and including the day of expiration. A European option can be executed only on the day of expiration. They believe the stock's value will rise in the future.
However, this investor is concerned about potential risks and decides to hedge their position with an option. A strategy https://betterinfo2.com/thrills/new-york-department-of-finance.php this is financce a dll finance put because it hedges the stock's downside risk.
They believe its value will rise over the next month. In both corporaciГіn nacional, the sellers are obligated to fulfill their side of the contract if the buyers choose to exercise the contract.
However, if dll finance stock's price is above the strike price at expiration, the put will be finnance and the seller the dll finance writer gets to keep the premium as the option expires.
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