If you apply the example of the property deal to the stock market you get the same situation.
When to channel stocks with late day trading and also chicago stock day trading for great results!
Buying an option either call or put gives you rights, selling (writing) options gives you an obligation.
When to channel stocks with late day trading and also chicago stock day trading for great results!
A property developer may take the option on a piece of land he wants to develop.
When to channel stocks with late day trading and also chicago stock day trading for great results!
They may decide that the Euro will appreciate against the US Dollar and take what is called a long position in Euro.
If Xyz Company is trading at $50 per share on or before the expiration date your option is in effect worth $10.