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elearning > Options explained
Learn about the following:
Why options are often considered risky. The four basic option positions. In, at and out of the money. Intrinsic and time value. Simple uses for options.
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Course Summary
- 30 minutes
- 9 question multiple choice test
- Why options are often considered risky
- The four basic option positions
- In, at and out of the money
- Intrinsic and time value
- Simple uses for options
Options explained - the details
1. Why so much interest?
- 4 reasons why options can cause concern
- Basic terms: underlying, premium, expiry, strike
- 4 option positions: long call, short call, long put, short put
- Premium payments
- The pay-off profiles
2. In, at and out of the money
- When you would exercise, examples
- Affect on price
- Intrinsic value
- Time value
3. Simple uses for options
- Expecting price increases/decreases
- Application, basic trades
- Combining options, example
- Why this is not risk free
4. Summary
5. Test
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