Business Studies, asked by Adityasangani6693, 1 year ago

Buying a call option is identical is equal to selling aput option

Answers

Answered by Anonymous
0

Answer:

If you buy an options contract, it grants you the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. A call option gives the holder the right to buy stock and a put option gives the holder the right to sell stock.

Answered by sy151902
0

Answer:

No sir both are quite different. Only similarity between buying call option and selling put option is that both are bullish strategies.

Buying option call has limited loss and unlimited profit with margin being equal to cost of option premium paid.

Wheres as when you sell a  put option, your profit is limited to premium received from selling the put option but loss is unlimited and margin is much more what is needed in buying call option.

Explanation:

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