Financial management
This query is : Resolved
CA LALIT PATIL
(Querist)
31 May 2014
Can anyone explain the risks and rewards of using options (Put and Call).
Amol S Joglekar
(Expert)
31 May 2014
Let us go by either of the 2....CALL (Because it is bit easy to grasp).......CALL becomes profitable for the buyer when market goes up. (Conversly a CALL becomes profitable for seller - also called as writer- when market goes down......)AT the extreme....the amount invested to buy a CALL is the RISK.....the reward could be the profit. (I know this is very basic answer.....) your further query is anticipated.
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