3 ms·

This is not true, the right to purchase at the current price but not the obligation has value in itself. Of course this is no where near the sum of the strike

This is not true, the right to purchase at the current price but not the obligation has value in itself. Of course this is no where near the sum of the strike price for the options.

analyst74 9y ago
Right, with options you can choose not to exercise if valuation goes down, avoiding a loss.
- walshemj 9y ago
  With some options (Warrants of investment trusts for example) you can sell those on the open market if they are in the money its also a way of leveraging your investments.