1) Futures contracts create obligations, not rights.
2) Only the option buyer gets rights.
3) Options seller is also known as writer.
4) Futures price = Cash price + carry charges
5) Cash price minus Futures price = Basis.
6) Maximum possible profit to the option seller = Premium
7) Neither intrinsic value nor time value can be negative.
8) Beta is a measure of systematic risk.
9) Longer the time to expiry, more will be the time value.
10) Short Futures = Long Put + Short call.
2) Only the option buyer gets rights.
3) Options seller is also known as writer.
4) Futures price = Cash price + carry charges
5) Cash price minus Futures price = Basis.
6) Maximum possible profit to the option seller = Premium
7) Neither intrinsic value nor time value can be negative.
8) Beta is a measure of systematic risk.
9) Longer the time to expiry, more will be the time value.
10) Short Futures = Long Put + Short call.
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