Options And Futures FAQs

  1. How is the price of a derivative determined?

  2. How can derivatives be used for risk management?

  3. How is a put option exercised?

  4. What is the difference between open interest and volume?

  5. What is the difference between options and futures?

  6. When is a put option considered to be 'in the money?'

  7. What is Stock Dilution?

  8. How can I identify stocks that also trade as options?

  9. Can a stop-loss order protect a short sale?

  10. Can an Option be Exercised on the Expiration Date?

  11. What is the difference between derivatives and swaps?

  12. What is the difference between derivatives and options?

  13. How can I calculate the delta adjusted notional value?

  14. What do the SP-500, Dow and Nasdaq futures contracts represent?

  15. I own some stock warrants. How do I exercise them?

  16. How do currency swaps work?

  17. What is a Debt for Equity Swap?

  18. Are We In A Bull Market Or A Bear Market?

  19. Where does the name "Wall Street" come from?

  20. I own options on a stock, and it's just announced a split. What happens to my options?

  21. How Does the ISIN Numbering System Work?

  22. If everyone is selling in a bear market, does your broker have to buy your shares from you?

  23. What is the difference between in the money and out of the money?

  24. Do I Own a Stock on the Trade Date or Settlement Date?

  25. Why Should I Invest?

  26. What does "guns and butter" refer to?

  27. What is the difference between return on equity and return on capital?

  28. How Do Fully Diluted Shares Affect Earnings?

  29. What is the CBOE Volatility Index? (VIX)

  30. What is the relationship between implied volatility and the volatility skew?

  31. How do I set a strike price for a future?

  32. What kinds of derivatives are types of contingent claims?

  33. How do I calculate a forward rate in Excel?

  34. What is the difference between an option-adjusted spread and a Z-spread in reference to mortgage-backed securities (MBS)?

  35. What is the difference between a currency and interest rate swap?

  36. When was the first swap agreement and why were swaps created?

  37. How do I change my strike price once the trade has been placed already?

  38. What types of options positions create unlimited liability?

  39. How accurate is the forward rate in predicting interest rates?

  40. Why is the initial value of a forward contract set to zero?

  41. How do I set a strike price for an option?

  42. What is the difference between a covered call and a regular call?

  43. Is it more advantageous to purchase a call or put option?

  44. Why are call and put options considered risky?

  45. What is the difference between a short position and a short sale?

  46. Where can I purchase options?

  47. After exercising a put option, can I still hold my option contract in order to sell it at a lower price?

  48. What are the differences between AMEX and Nasdaq?

  49. Does the seller (the writer) of an option determine the details of the option contract?

  50. What do all of the letters in a stock option ticker symbol mean?

  51. Why do options with the same underlying stock and strike prices trade for different amounts?

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