Tsog Namjil Munkhbayar Rinchin Ta Kambe Caroline Ren Kevin Garski my lecture notes say that financial derivatives are used to gain extra leverage for specialised market speculation. with superior info, larger profit per dollar can be made by buying suitable derivatives than underlying asset. OK, then lets hypothetically assume that I have superior analysis that tells me that Turquoise Hill Resources will slide to 2 bucks in September 2014. according to Yahoo finance, September puts on TRQ with strike price of $8(whole shebang) costs $5. then I pay $5 to get put that if I am right will bring me payoff of $6? then my net profit is only $1?where is that extra-leverage mentioned in my lecture note?thanks! hey any other friends who trade or knowledgeable on TRQ options or any other options, lets hook up!
Posted on: Sat, 28 Jun 2014 15:54:50 +0000
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