Question

When a portfolio or stock can be hedged by futures contract then why there is a invent option?

Answer 1

Explanation:

· There are only two kinds of options: call options and put options. A call option is an offer to buy a stock at a specific price, called a strike price, before the agreement expires. A put option is an offer to sell a stock at a specific price. In either case, options are a derivative form of investment.

Answer 2

Explanation:

there are only two kind of option because when report for your stock and held by futures contract then there is a invent option