Tag Archives: Rollover

Options: Pros and Cons Pros: Flexibility Limited risk Buying options limits your exposure. The maximum you can lose is the value of the option, the price you paid for it. Purchasing options as a speculative vehicle offers limited downside — you cannot lose more than the price you paid for the option — and unlimited ...

Random variable A function that assigns a real number to each and every possible outcome of a random experiment. Random walk Theory that stock price changes from day to day are at random; the changes are independent of each other and have the same probability distribution. Many believers of the ...