2007-08-04 11:48:08 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
It took me less than 4 seconds to fiind this:
http://biz.yahoo.com/opt/education.html
2007-08-04 11:57:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Options are gambling on the future price of a share of stock or price of commodity like pork bellies.
If you think the price will go up you would pay to be allowed to buy it in the future at today's price.
The other guy thinks the price will go down so you won't want it at today's price and he wins the price of the option.
You can offer to sell stock you don't even own yet. If I offer to sell you stock at a price in the future thinking the price will fall, when you buy in the future I have to go buy the stock to sell you. If I was right I make a fortune because you are giving me more than it cost. If I was wrong the price goes up instead I have to buy it at a high price and sell for a low price. If it doubled in the time of the option I might end up bankrupt.
2007-08-04 19:01:40 · answer #2 · answered by shipwreck 7 · 0⤊ 0⤋
A good intro book to options is Michael Sincere's book, Understanding Options. He explains them in very easy-to-understand terms.
http://www.amazon.com/Understanding-Options-Michael-Sincere/dp/0071476369/ref=pd_bbs_sr_2/002-0500426-7317605?ie=UTF8&s=books&qid=1186282052&sr=8-2
2007-08-04 22:48:00 · answer #3 · answered by derobake 4 · 0⤊ 0⤋