Call vs Put Options Essay Example | Topics and Well Written Essays - 250 words

Call vs Put Options - Essay Example Again, they are guaranteed of no losses. Financial options are perhaps a better way to attract investors in stock companies and encourage them to invest. However, I think because they are not ready to take risks with their shares they could be at a disadvantage if their stocks are bought or sold at higher values other than the agreed upon values. In my opinion, financial options can be good or bad. The buying contracts reduce risks in the event of a negative outcome. The buyer is somewhat protected while the trader increases gains and reduces losses. This is especially important given the volatile nature of the stock market as affected by issues such as fluctuating interest rates, exchange rates, and other market forces. Perhaps a major disadvantage of the two options is losing part of, or the whole contract price. Again, there is the risk of broker insolvency or non-fulfillment of contractual

Consumer Mathematics Speech or Presentation Example | Topics and Well Written Essays - 250 words

Consumer Mathematics - Speech or Presentation Example Some common variants of traditional savings accounts are; passport savings, money market accounts. Although passbook savings is one of the most widely used since it stipulates few restrictions and withdrawals are usually not limited; consequently they are typically low yielding alternatives to other types of accounts. Interest can be compounded daily, weekly or monthly so it pays to calculate actual yield based on terms and all transactions are recorded. Money market accounts provide a more attractive alternative to passbook accounts, since they are usually higher yielding, provide the ability to write checks, and are subject to certain restrictions. Some disadvantages are that they are typically subject to fairly high minimum balance requirements in order to avoid fees and usually restricted to six withdrawal transactions, three must be done by check. Certificate of deposit provides the most attractive alternative as an investment instrument. Certificates of Deposit provide the high est interest return and are virtually risk free due to the fact that they are insured by the FDIC. The deposits are usually of a fixed term, with maturity ranging often three months, six months or from 1-5 years. Interest is usually fixed, with longer term CD’s usually offering a higher yield. The main disadvantage lies in the fact that early withdrawal is heavily penalized, thus the investor must be aware of this fact because the principal is held until