6 terms

Math Final

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Terms in this set (...)

Call
the right to BUY a stock at a fixed price at a fixed time
Put
the right to SELL a stock at a fixed price at a fixed time
"In-the-money"
CALL-strike price is BELOW the current market price of the stock
PUT- strike price is ABOVE the current market price of the stock
"Out-of-the-money"
CALL-strike price is ABOVE the current market price of the stock
PUT-strike price is BELOW the current market price of the stock
Covered Call
an option strategy where you buy the stock and sell a call option
Protected Put
an option strategy where you buy the stock and buy a put option