Long Investment
Open Position
Buy 100 shares of GOOGL at 100.00 .
Close Position
Sell 100 shares of GOOGL at 100.00 .
Buy 100 shares of GOOGL at 100.00 .
Sell 100 shares of GOOGL at 100.00 .
Purchase rights to buy 10 lots of GOOGL shares, from the option writer for 100.00 , which currently costs 100.00 by paying a NaN premium assuming 10.0 % pa volatility and 10 days left till expiration.
Exercise the option when GOOGL is priced at 100.00 and gain NaN or let the option expire and lose NaN
Sell 100 shares of GOOGL at 100.00 by borrowing the stocks.
Buy 100 shares of GOOGL at 100.00 and return it back.
Purchase rights to sell 10 lots of GOOGL shares, to the option writer for 100.00 , which currently costs 100.00 by paying a NaN premium assuming 10.0 % pa volatility and 10 days left till expiration.
Exercise the right to sell when GOOGL is priced at 100.00 Either by using pre-owned stock purchased at 100.00 and earn NaN or by opening and closing a short position and earning a NaN Let the option expire and lose NaN