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Oh, so you can just pay the fees, cancel the put option, and keep the stock you bought at the beginning of the process?
by ZenoArrow 11y ago
Oh, so you can just pay the fees, cancel the put option, and keep the stock you bought at the beginning of the process?
- kasey_junk 11y agoOr really sell the stock you bought at the beginning of the process if you want to take profit.
- ZenoArrow 11y agoYes, that's one option. So just so I understand, what flexibility do you have as the purchaser of the put option when it comes to selling. From what I understand the purchaser can choose to sell between the put option maturity date and the put option expiry date, is that correct? Are these typically the same date? Would you pay a premium to have a wider gap between the maturity date and expiration date?
- kasey_junk 11y agoThe major difference between OTC and exchange traded derivatives is that exchange traded ones have set contracts that standardize these things. What those set contracts are is exchange to exchange and product offering to product offering. You can take a look at CBOE's product web page to get an idea about the different kinds of options products they offer.