what is call option and put option, what is warrant, what is derivative

what is call option and put option, what is warrant, what
is derivative

Question Posted / mail

2 Answers
7786 Views
Ford, ITC Infotech, Sharekhan, I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

what is call option and put option, what is warrant, what is derivative..

Answer / kkr

Call Options give the option buyer the right to buy the underlying asset.

Put Options give the option buyer the right the sell the underlying asset.

Options provide right to buy or sell but not obligation any
underlying at a certain rate and certain time .options are
for short time maximum three month . those option which
have long expiry time are called as warrants.........

DERIVATIVE IS A FINANCIAL PRODUCT WHICH VALUE IS DERIVED
FROM UNDERLYING ASSET.

Is This Answer Correct ?

27 Yes

2 No

what is call option and put option, what is warrant, what is derivative..

Answer / anil kumar.sirangi

A derivative security is a financial contract whose value is
derived from the value of something else, such as a stock
price, a commodity price, an exchange rate, an interest
rate, or even an index of prices..
EX:-curd..which is derivative of milk..coz the price of curd
depends upon the price of milk..

call option:-(right to buy) it gives the holder the right
but not the obligation to buy an asset by a certain date for
a certain price.

put option:-(right to sell) it gives the holder the right
but not the obligation to sell an asset by a certain date
for a certain price.

Is This Answer Correct ?

9 Yes

0 No

Post New Answer

More Banking Finance Interview Questions

Mention the difference between bills payable and bills receivable?

0 Answers

What is 'consolidated fund'?

0 Answers

what are the requirements to connect Tally ERP 9 remotely?

0 Answers

explain the impact of manufacturing sector after the global melt down? what are the strategical decissions required to be taken by the corporate sector to revive the situation?

0 Answers

What is the portfolio management? How can it helpful for financial management?

0 Answers

write short note:- a)Person, b)Assessee, c)Deemed Assessee, D)Agricultural Income

7 Answers

What is Under Subscription?

0 Answers Joint Stock Company,

What Is Materiality?

0 Answers

Comment on Jan Dhan Yojna Scheme.

0 Answers IBPS,

Why should a business prepare fund flow statement?