Lets assume you buy a call (right to buy) 100 shares of Xyz company at an agreed price (strike price) on an agreed date (expiration date) at say $40 per share and you pay $5 for the option.
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The random walk theory dictates that a security prices changes randomly, with no predictable patterns.
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A property developer may take the option on a piece of land he wants to develop.
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If for some reason he can not get the permits he needs then he simply does not exercise his option to purchase.
They may decide that the Euro will appreciate against the US Dollar and take what is called a long position in Euro.