International (5) - Derivatives

Option is a contract between 2 parties' , this contract give the buyer the right but not obligation

........option can be exercised only on its expiration , whereas …....option can be exercised anytime until expairy date

Futures contracts require that the purchaser deposit an initial sum as collateral. This deposit is called a………………………….

………………………transaction in the foreign exchange market requires an almost immediate delivery of foreign exchange

...............gives the Buyer the right, NOT obligation, to buy underlying asset at fixed price for a specifed Period

When investor simultaneously buys and sells an asset in different markets to make profit Due to Price difference .......

The Elements of a Valid Contract are ; Agreement , Considration ,Legal Purpose and Competent Parties

certificate issued by a co. that gives the right to buy a stated no. of shares of the company’s stock at specified price

one party promises to make a series of payments in exchange for receiving another set of payments from the second party.

The American option is more valuable than the European option

A call option whose exercise price exceeds the spot rate is said to be ………...........

……………………… transaction in the foreign exchange market requires delivery of foreign exchange at some future date

An option that gives its holder the right to sell a stock at a specified price at some future time is …………………………………