What is my strike price?
I'm trying to figure out the specific price point, known as the strike price, for a particular option or contract I'm interested in. This price is crucial as it determines certain outcomes or actions related to my investment.
How to calculate option price using delta?
I'm curious about how to calculate the price of an option using delta. Can you explain the process step-by-step, and what factors I should consider when doing so? How does delta affect the price of an option, and how can I use this information to make informed investment decisions? Additionally, are there any tools or software available that can help me calculate option prices more accurately and efficiently?
What happens if option price goes to zero?
I'm just curious, could you explain what happens if the price of an option falls to zero? I've heard rumors that it could mean significant losses, but I'm not entirely sure how it works. Could you elaborate on the potential consequences? Would the holder of the option lose all their investment? Or is there some sort of protection mechanism in place? I'm trying to understand the risks involved in trading options and how to manage them effectively. Could you please shed some light on this matter?