What are stock options and how do they work?
Stock options are contracts that give you the right to buy or sell a stock at a predetermined price before a certain date.
What is the difference between call options and put options?
Call options give you the right to buy a stock, while put options give you the right to sell a stock.
How do I determine the value of a stock option?
The value of a stock option can be determined using various models, such as the Black-Scholes model, which considers factors like stock price, strike price, time to expiration, and volatility.
What are the risks associated with trading stock options?
The risks include losing your entire investment, as options can expire worthless, and the complexity of options trading can lead to significant losses if not understood properly.
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