5/13/2016

OptionsBasicsYouShouldLearn|BankExamsToday

Home

Current Af f airs
E nglish

P apers

Downloads

Aptitude

Quiz

Notif ications

IBPSBookPDFDownload
FreeDownloadIBPSFormulas,andPrepareTipstoSaveTimeinExam

OptionsBasicsYouShouldLearn
Publishedon1:40PM

ShareonFacebook

ShareonTwitter

ShareonGoogle+

TodayIamgoingtodiscussbasicsofOptionsthatyoumustknow.Thistopicisreally
importantforBankinterview

WhatisanOption
AnOptiongiverighttoOptionHoldertobuyorsellacommodityduringacertain
periodoftimeoronaspecificdate.
ForexampleIownaGarmentmill.Ineed100tonnesofcottoninthelastquarter
ofeveryyear.InJunethisyear,priceperbaleofcottonisRs2000.Pricesmayrise
orfall.
Idon'twanttotakethisrisk,asthisisnotmybusiness.SoIwillfindapersonwhose
businessistotakerisks.InexchangeofcontractmoneyIwillbuytherighttobuy
100tonnesofcottonatRs2000.Imayormaynotusethisoption.
http://www.bankexamstoday.com/2014/12/optionsbasicyoumustknow.html

1/10

5/13/2016

OptionsBasicsYouShouldLearn|BankExamsToday

AmericanStyleOptions
Optionsthatcanbeexercisedatanytime

Europeanstyleoption
Optionsthatcanbeexercisedonlyatthetimeofmaturity

Calloption
AnoptionwhichgivesrighttotheOptionHoldertobuyacertainstockatspecified
timeandspecifieddate

Putoption
AnoptionwhichgivesrighttotheOptionHoldertosellacertainstockatspecified
timeandspecifieddate

Settlementprice
Valueofanoptioniscalculateddaily.Thatriceisknownassettlementprice

PlainVanillaCall
Basictypeofoptionwithafixedmaturityandpurchaseprice

Typesoftrade
1)Purchaseacall
Optionholdergetsright(noobligation)topurchasespecifiedsecuritiesataspecified
time.
2)Purchaseaput
Optionholdergetsright(noobligation)tosellspecifiedsecuritiesataspecifiedtime.

http://www.bankexamstoday.com/2014/12/optionsbasicyoumustknow.html

2/10

5/13/2016

OptionsBasicsYouShouldLearn|BankExamsToday

3)Sellacall
Sellerofoptionhasobligationtosellspecifiedsecuritiesataspecifiedtime.
4)Sellaput
Sellerofoptionhasobligationtopurchasespecifiedsecuritiesataspecifiedtime.
Like

Share 19,054peoplelikethis.Bethefirstof
yourfriends.

DownloadSBIClerkNotes

Join40,000+readersandgetfreenotesinyouremail

Enteryouremailaddress...

Join

morepostsaboutbanking
LatestListofIndian
banksTheirHeads
andHeadOffice

FacilitiesProvidedby

SmartNotesOnRBI

LatestListofIndian

India'sBank(PDF

andIt'sFunctions

banksTheirHeads

http://www.bankexamstoday.com/2014/12/optionsbasicyoumustknow.html

3/10

5/13/2016

India'sBank(PDF

OptionsBasicsYouShouldLearn|BankExamsToday

andIt'sFunctions

andHeadOffice

Version)Updated

Labels:article,banking

Safilguda

Hastinapuram
Sainikpuri

14 Lacs
2 BHK, Hyderabad

Explore Now

http://www.bankexamstoday.com/2014/12/optionsbasicyoumustknow.html

4/10

5/13/2016

OptionsBasicsYouShouldLearn|BankExamsToday

Commentsforthisthreadarenowclosed.

4Comments

BankExamsToday

Share

Recommend

Login

SortbyNewest

AmodAnkit ayearago

Goodone!
Keepthrowinglightonmorefinancialtermslikeswaps,futuresetal.
Thanksgalore!
1

Share

VinodKumar ayearago

Hisir.WhenyouWilprovideEnglishdigest?
1

Share

RamandeepSingh

Mod >VinodKumar

ayearago

Makingit,willbeavailablesoon
3

Share

SaiKiran>RamandeepSingh ayearago

siriwnttoaskyouanimportantquestionplzgiveareply

Share

ALSOONBANKEXAMSTODAY

MixedAptitudeQuiz11(ForSBI
Clerical2016)

FillintheBlanks:CommonErrorswith
Explanations

12comments19hoursago

6comments2daysago

ArrowSIof2yrs=8%CIof2yrs=8.16%

vaibhavsinghRamansirfromlasttwo

difference0.16%=50then
principal(100%)=(50/0.16)*100=31250

daysthedailycontentofbankexams
todayisnotmailedtomeinmymail

SportsQuizforSSCCGLExam
3comments2daysago

RockyAryan2014Soccerworldcup

CompleteWinnersListOfBAFTA
Awards2016
2comments2daysago

Host:BrazilTejaswanisawant:Shooting
HQofIOC:LussanneSwitzerland.

Subscribe

AddDisqustoyoursiteAddDisqusAdd

http://www.bankexamstoday.com/2014/12/optionsbasicyoumustknow.html

AbhinavGuptatnx

Privacy
5/10

5/13/2016

OptionsBasicsYouShouldLearn|BankExamsToday

NewerPost

Home

OlderPost

SearchThisBlog
Search

http://www.bankexamstoday.com/2014/12/optionsbasicyoumustknow.html

6/10

5/13/2016

OptionsBasicsYouShouldLearn|BankExamsToday

Sponsors

http://www.bankexamstoday.com/2014/12/optionsbasicyoumustknow.html

7/10

5/13/2016

OptionsBasicsYouShouldLearn|BankExamsToday

Wanttoshareanythingwithus?
Youcanreachusat

raman@bankexamstoday.com

MonthlyGKDigest
Feb2016
Jan2016(English&Hindi)
Dec2015
Nov2015
GKDigest2015
October2015
September2015
August2015Digest
July2015
JuneDigest

AboutMe
http://www.bankexamstoday.com/2014/12/optionsbasicyoumustknow.html

8/10

5/13/2016

OptionsBasicsYouShouldLearn|BankExamsToday

My name is Ramandeep Singh. I

love to help people preparing for
Bank exams.
Join40,000studentsandgetfree
notesinPDF
Enteryouremailaddress...

Join

GeteBooks(Notes)
MarketingAwarenessRs30
ComputerAwarenessRs40
DescriptivePaperRs30
BankingAwarenessRs40
CompletepackageRs250
DataInterpretationRs40

http://www.bankexamstoday.com/2014/12/optionsbasicyoumustknow.html

9/10

5/13/2016

OptionsBasicsYouShouldLearn|BankExamsToday

HOM E

ABOUT

S I TE M AP

C O N TA C T U S

J O B S @ B A N K E X A M S T O D AY

S P ONS OR US

MadewithinLudhiana
Copyright2016BankExamsToday.AllRightsReserved.AuthoredBy RamandeepSingh

http://www.bankexamstoday.com/2014/12/optionsbasicyoumustknow.html

10/10