For this reason, choices are often thought about less dangerous than stocks (if used properly). But why would a financier use alternatives? Well, buying options is basically banking on stocks to go up, down or to hedge a trading position in the market - what does a finance manager do. The price at which you consent to buy the underlying security via the alternative is called the "strike cost," and the charge you pay for purchasing that option agreement is called the "premium." When identifying the strike rate, you are betting that the possession (usually a stock) will increase or down in price.

There are 2 different kinds of options - call and put options - which provide the investor the right (however not commitment) to sell or purchase securities. A call alternative is an agreement that offers the financier the right to purchase a specific quantity of shares (generally 100 per agreement) of a particular security or commodity at a defined cost over

timeshare foreclosure