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Sagot :
You purchase one MBI July 120 put contract (equaling 100 shares) for a premium of $3. You hold the option until the expiration date, when MBI stock sells for $123 per share. You will realize a $200 loss on the investment.
What is investment?
A purchase made with the intention of creating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation. When a person invests in a thing, they do not intend to utilize it as a source of immediate consumption, but rather as a tool for future wealth creation.
An investment usually involves the expenditure of some resource today—time, effort, money, or an asset—in the anticipation of a future return larger than the initial investment. For instance, an investor could buy a financial asset right now with the hope that it would provide income later on or that it can be sold for a profit at a higher price.
To study more about investment.
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