In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction. The price of an option derives from … Continue reading

In-show trading mechanics

TRADE show mechanics – trading (PDF)

Brainstorm: options markets

Options markets if a ticket is trading at $1 this round and I think it will be trading at $2 in 3 rounds I pay 25¢ for the option of buying the stock in a fixed period of time for a certain amount of money. clarification: If a ticket is trading $1 this round and … Continue reading