"underlying" in inglés with examples - Collocation dictionary inglés
- In both cases, the seller is writing a covered option, since the contracts are backed by the underlying shares.
- But these may be just the cost of buying (selling) either a future or the underlying shares.
- In the case of traditional options the commission charges are based on the value of the underlying shares rather than the option price itself.
- Each option contract consists of the rights to buy or sell 1,000 of the underlying shares.
- Therefore, no investor through the exercise of either put or call options can hope to influence the market for the underlying shares.
- So the greater the volatility of the underlying share, the greater the time value for any given term to maturity is likely to be.
- Lastly, option premiums are likely to be affected by the expectations about the company which issued the underlying shares.
- On the other hand a call cannot exceed the value of the underlying share:.
- Such borrowing is done by placing the underlying shares in a margin account on which the broker charges interest each month.
- Life companies have until the end of 1991 to switch their unit trusts into the underlying shares without tax penalties.
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