Financial management
This query is : Resolved
31 May 2014
Can anyone explain the risks and rewards of using options (Put and Call).
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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