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Derivative Securities: Speculation | Intermediate Accounting | CPA Exam FAR | Chp 17
 
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Financial forwards, financial futures, Options, Swaps, speculator, Arbitrageurs, notional amount, call option, put option, intermediate accounting, Intrinsic value, time value, option premium fair value hedge, cash flow hedge, speculation, interest rate swap, cash flow risk, spot price, Unrealized Holding Gain or Loss—Income, Unrealized Holding Gain or Loss—equity, cpa exam, cfa exa,
How to do Accounting for Equity Derivatives trading ?
 
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Accounting & Taxation Guidelines issued by Institute of Chartered Accountants of India ( ICAI ) - Initial Margin - Mark to Market Margin - Equity Index / stock Option Premium account - Equity index / stock option margin account
Views: 2143 MODELEXAM
Relationship between Strike Price and Premium of an Option Contract
 
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FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video was recorded during a one of the CFA Classes in Pune by Mr. Utkarsh Jain.
Views: 16978 FinTree
Call and Put Options for Beginners!
 
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A call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of option.[1] The buyer of the call option has the right, but not the obligation, to buy an agreed quantity of a particular commodity or financial instrument (the underlying) from the seller of the option at a certain time (the expiration date) for a certain price (the strike price). The seller (or "writer") is obligated to sell the commodity or financial instrument to the buyer if the buyer so decides. The buyer pays a fee (called a premium) for this right. When you buy a call option, you are buying the right to buy a stock at the strike price, regardless of the stock price in the future before the expiration date. Conversely, you can short or "write" the call option, giving the buyer the right to buy that stock from you anytime before the option expires. To compensate you for that risk taken, the buyer pays you a premium, also known as the price of the call. The seller of the call is said to have shorted the call option, and keeps the premium (the amount the buyer pays to buy the option) whether or not the buyer ever exercises the option. For example, if a stock trades at $50 right now and you buy its call option with a $50 strike price, you have the right to purchase that stock for $50 regardless of the current stock price as long as it has not expired. Even if the stock rises to $100, you still have the right to buy that stock for $50 as long as the call option has not expired. Since the payoff of purchased call options increases as the stock price rises, buying call options is considered bullish. When the price of the underlying instrument surpasses the strike price, the option is said to be "in the money". On the other hand, If the stock falls to below $50, the buyer will never exercise the option, since he would have to pay $50 per share when he can buy the same stock for less. If this occurs, the option expires worthless and the option seller keeps the premium as profit. Since the payoff for sold (or written) call options increases as the stock price falls, selling call options is considered bearish.
Views: 61187 Option Trader
Currency Options Step-by-Step
 
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Academic discussion of fundamentals of currency options
Views: 37391 collegefinance
Call Option As A Derivative (Intrinsic Value, Time Value, Unrealized Holding Gains & Losses)
 
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Accounting for a call option as a derivative used in speculation, call option value depends on market price of some common stock, the call option gives the right to buy a certain number of shares of stock (which the option purchased on) at a preset price (strike price), the option was purchased with the intent the stock price would increase above the strike price & stock would be purchased at the lower strike price & sold at the higher market price to earn a profit (based on number of shares for the Option, notational value), call option value = (intrinsic value + time value), the intrinsic value is the difference between the stocks market price & strike price & time value is the market appraisal where the options fair value, expectation that market price of shares will increase above the strike price, call option is recorded as an asset where any increase in intrinsic value (market price is greater than previous market price) is an increase in the Call Option & any decrease in intrinsic value (market price less than previous market price) is a decrease in Call Option, change in time value (reduction) decreases the Call Option, any increases or decreases in the Call Option are recorded as Unrealized Holding gains or losses as income, when exercising the Call Option cash settlement: (market price - strike price) x number of shares on option, a realized gain or loss is recognized based on the cash settlement & net amount in the Call Option account, detailed accounting by Allen Mursau
Views: 3871 Allen Mursau
Intermediate Accounting 18A Expensing Stock Options
 
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Ken Boyd is the owner of St. Louis Test Preparation (www.stltest.net). He provides tutoring in accounting and finance to both graduate and undergraduate students. Ken is the author of Cost Accounting for Dummies (Available in March of 2013). As a former CPA, Auditor, Tax Preparer and College Professor, Boyd brings a wealth of business experience to education.
Views: 1196 AccountingED
Forward Contract Accounting With Journal Entries (Hedge Accounting)
 
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Accounting required for a forward contract which is a financial derivative instrument, how to record a forward contract on the Balance Sheet And Income Statement from both the buyers and sellers propsective,seller agrees to deliver specific amount of an asset (commodity) in the future while buyer agrees to purchase asset in the future, example includes the contract date, when asset is exchanged and revaluation or amortization of any discount or premium, also spot and forward rates, forward price, detailed accounting example with journal entries by Allen Mursau
Views: 47551 Allen Mursau
Bill Poulos Presents: Call Options & Put Options Explained In 8 Minutes (Options For Beginners)
 
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Bill Poulos and Profits Run Present: How To Trade Options: Calls & Puts Call options & put options are explained simply in this entertaining and informative 8 minute training video which uses 2 cartoon-based scenarios to help you learn how to trade call options and how to trade put options. If you've ever been confused by calls and puts in the past, this video will clear up any confusion you may have had. Also, if you're looking to learn how to trade options, you will learn some simple options trading strategies in this short video. For more training, get my free "dummies" guide to options trading here: http://www.prtradingresearch.com/simple-options-youtube3
Views: 1253518 Profits Run
Exercising (Options)
 
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What does exercising mean? When should I exercise and what is the math involved? What are the basic tax implications?
Views: 14477 Quatere
Selling Put Options in Smaller Trading Accounts
 
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Tom Sosnoff and Tony Battista explain when to sell put options to take advantage of return on capital in a smaller trading account. The strategy they discuss allows investors to use capital more efficiently and increase their probability of success. tastytrade is a real financial network with 8 hours of live programming from 7am-3pm CT WATCH LIVE at https://www.tastytrade.com/tt/#/  Subscribe for FREE  and have full access to our segments on demand.
Views: 149857 tastytrade
Example: Interest Rate Swap with Journal Entries | Intermediate Accounting | CPA Exam FAR
 
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Like us on Facebook: https://www.facebook.com/accountinglectures Visit the website where you can search using a specific term: https://www.farhatlectures.com/ Connect with LinkedIn: https://www.linkedin.com/in/mansour-farhat-cpa-cia-cfe-macc-2453423a/ Financial forwards, financial futures, Options, Swaps, speculator, Arbitrageurs, notional amount, call option, put option, intermediate accounting, Intrinsic value, time value, option premium fair value hedge, cash flow hedge, speculation, interest rate swap, cash flow risk, spot price, Unrealized Holding Gain or Loss—Income, Unrealized Holding Gain or Loss—equity, cpa exam, cfa exam,
Collar Options Trading Strategy (Best Guide w/ Examples)
 
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The collar options strategy consists of selling a call and buying a put against 100 shares of stock. The strategy aims to reduce the loss potential on the long stock position without spending too much for protection. This is accomplished by financing the cost of buying the put by selling a call option as well. It's possible to construct a collar in a way that guarantees profits at expiration (if you own a profitable long stock position). In this video, you'll learn: 1. What are the characteristics of the collar options strategy? 2. What does the expiration risk graph look like for a collar position? 3. How do collar positions perform when the stock prices moves up, down, or sideways? Also, you'll see real trade examples of collars in action. As a result, you'll know exactly what to expect from a married put before trading one. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/
Views: 4846 projectoption
An Introduction to Financial Accounting - 9.5.2- Stock-based Compensation Disclosure Example
 
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Financial Accounting by Brian Bushee. University of Pennsylvania. An Introduction to Financial Accounting This course will improve your fluency in financial accounting, the language of business. You will learn how to read, understand, and analyze most of the information provided by companies in their financial statements. These skills will help you make more informed decisions using financial information.
Views: 822 Azar Mammadov
Derivative Securities: Cash Flow Hedging | Intermediate Accounting | CPA Exam FAR | Chp 17
 
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Financial forwards, financial futures, Options, Swaps, speculator, Arbitrageurs, notional amount, call option, put option, intermediate accounting, Intrinsic value, time value, option premium fair value hedge, cash flow hedge, speculation, interest rate swap, cash flow risk, spot price, Unrealized Holding Gain or Loss—Income, Unrealized Holding Gain or Loss—equity, cpa exam, cfa exam,
Derivative Securities: Fair Value Hedging | Intermediate Accounting | CPA Exam FAR | Chp 17
 
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Financial forwards, financial futures, Options, Swaps, speculator, Arbitrageurs, notional amount, call option, put option, intermediate accounting, Intrinsic value, time value, option premium fair value hedge, cash flow hedge, speculation, interest rate swap, cash flow risk, spot price, Unrealized Holding Gain or Loss—Income, Unrealized Holding Gain or Loss—equity, cpa exam, cfa exa,
Fair Value Option for Long-Term Liabilities | Intermediate Accounting | CPA Exam FAR |Chp 14 p7
 
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Debt investment, equity investment, trading securities, available for sale, held to maturity, amortized cost, fair value, unrealized holding gain, unrealized holding loss, amortizing premium, amortized discount. effective interest rate method, straight line method, interest revenue, fair value adjustment, equity method, investor, investee
Chuck Hughes: Selecting an Option Strike Price
 
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Selecting an option strike price is an often overlooked but important part of profitable option investing. Option premiums consist of time value an intrinsic value. Option Premium = Time Value + Intrinsic Value The strike price of an option determines the options time value and intrinsic value. Options lose all time value at expiration. Options Lose All Time Value at Expiration When you purchase an option the time value portion of an option is a decaying asset. Therefore the goal is to maximize intrinsic value and minimize time value when you purchase an option. Goal is to Maximize Intrinsic Value and Minimize Time Value In this video you will learn a simple method for selecting a strike price that allows you to maximize intrinsic value and minimize time value when you purchase an option.
Views: 11934 Charles Hughes
OPTIONS CONTRACT
 
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-- Created using PowToon -- Free sign up at http://www.powtoon.com/youtube/ -- Create animated videos and animated presentations for free. PowToon is a free tool that allows you to develop cool animated clips and animated presentations for your website, office meeting, sales pitch, nonprofit fundraiser, product launch, video resume, or anything else you could use an animated explainer video. PowToon's animation templates help you create animated presentations and animated explainer videos from scratch. Anyone can produce awesome animations quickly with PowToon, without the cost or hassle other professional animation services require.
Views: 3927 Emilya Nur
Call option (example )
 
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Sally has a call option to buy 800 Wesizwe Platinum shares at R70 a share. It is an American option and expires on 30 April 2013.Explain whether or not she will exercise this option given the following situations: (i) On 28 February 2013 the price of Wesizwe Platinum shares is R74 per share. (ii) On 30 March 2013 the price of Wesizwe Platinum shares is R68 per share.. (iii) On 15 May 2013 the price of price of Wesizwe Platinum shares is R72 per share.
Views: 15220 lostmy1
Accounting for Stock Options
 
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http://www.accounting101.org Accounting for stock options: this is an example problem about how to account for stock options.
Views: 20718 SuperfastCPA
Call and Put options for Dummies
 
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In finance, an option is a contract which gives the owner the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date. The seller incurs a corresponding obligation to fulfill the transaction, that is to sell or buy, if the long holder elects to "exercise" the option prior to expiration. The buyer pays a premium to the seller for this right. An option which conveys the right to buy something at a specific price is called a call; an option which conveys the right to sell something at a specific price is called a put. Both are commonly traded, though in basic finance for clarity the call option is more frequently discussed, as it moves in the same direction as the underlying asset, rather than opposite, as does the put. http://www.garguniversity.com Check out Ebook "Mind Math" from Dr. Garg https://www.amazon.com/MIND-MATH-Learn-Math-Fun-ebook/dp/B017QEIF18
Views: 135570 Garg University
Series 7 Exam Session 20 - Options Part 1
 
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Session 20 in our Series 7 exam videos. Provides an overview of Options for the exam. Get more answers at our forum for finance and accounting at passingscoreforum.com
Views: 18538 Passing Score
Call Or Put Options Hedge  Accounting On Balance Sheet And Income Statement
 
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Accounting (detailed calculations and journal entries) for call or put options as hedging investment (hedge against price fluctuations) hedge investment, example is for a call option to purchase a fixed number of shares (commodity) at a set price in the future, option market value equals option intrinsic value plus time value, intrinsic value is not lost due to passage of time while time value is lost due to passage of time, show how to calculate intrinsic value and time value of option, based on stock market price, strike price and option market price, detailed accounting journal entries, option market value (asset), option intrinsic value (AOCI equity unrealized gain or loss) and option time value (realized gain or loss), accounting example by Allen Mursau
Views: 9311 Allen Mursau
How To Use Options To Buy And Sell Shares At Incredible Prices
 
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In this video I describe the basics of call and put options and detail how they can be used to collect premium as well as buying shares at a discount and selling at a premium. This can be beneficial in all markets and can help investor's overcome certain biases. This information can be implemented in all trading styles and is very simple. Referral Codes: Robinhood: https://share.robinhood.com/stevenk692 Acorns: https://acorns.com/invite/5QAPTW Stash: https://get.stashinvest.com/alecyfjj0 twitter: alecdk26 stocktwits: adk26 Disclosure: This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. As an investor, you are fully responsible for any investment decision that you make.
Views: 1364 Alec Karanikolas
Hedge Option Accounting For Call Or Put Options As Hedging Derivative
 
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Accounting for call or put options as hedging investment (hedge against price fluctuations) hedge investment, example is for a call option to purchase a fixed number of shares (commodity) at a set price in the future, option market value equals option intrinsic value plus time value, intrinsic value is not lost due to passage of time while time value is lost due to passage of time, show how to calculate intrinsic value and time value of option, based on stock market price, strike price and option market price, complete accounting for hedge option on balance sheet (includes intrinsic and time value journal entries) and income statement, realized versus unrealized gain or loss on hedge, detailed example with calculations and accounting journal entries by Allen Mursau
Views: 7478 Allen Mursau
How To Generate Passive Income Using Cash-Secured Puts
 
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The end goal of many dividend investors is to generate enough portfolio income to cover their living expenses. There are two ways to reach this goal faster: have a larger portfolio or generate a higher portfolio yield. In this video, I’m explain how you can generate higher portfolio income by implementing a sophisticated options strategy called cash-secured puts. We talk about the following components of a cash-secured put strategy: • What Is A Cash-Secured Put Options Strategy? • How To Select Which Cash-Secured Puts To Sell • Cash-Secured Put Example #1: Johnson & Johnson (JNJ) • Cash Secured Put Example #2: The Coca-Cola Company (KO) • Cash-Secured Put Example #3: Berkshire Hathaway (BRK.B) ------------------------------------------------- What is a cash-secured put options strategy? In a cash-secured put options strategy, you sell a put option for a security that you would like to perhaps purchase, but at a lower price than it is currently trading at. This allows you to receive the option premium upfront in exchange for the obligation to purchase the security at a lower price point. In an ideal scenario, the stock that you own will trade above the strike price of the option for the duration of the option’s lifespan. This means that you will collect the option premium and will not be required to actually purchase the underlying stock. While this is the ideal scenario, there are still two other possible scenarios that must be understood before an investor participates in a cash-secured put options strategy. The second alternative scenario is when the underlying stock falls to a level that is between the strike price and the strike price less the option premium. In this scenario, the investor still wins because its adjusted cost basis is still better than what’s available on the open market after you account for the option premium received. The third scenario is when the stock price declines to a point below the strike price minus the option premium. In this scenario, the investor’s adjusted cost basis is worse than what can be achieved on the open market, even after accounting for the option premium received in the beginning. In my experience, an excellent way to identify put options that are suitable for a cash-secured put strategy is by targeting the following characteristics: • Stock options with 45-60 days until expiration; • With strike prices ~1 standard deviation below the current market price If you take anything away from this video, let it be this: cash-secured puts allow you to generate passive income from the cash that sits in your account waiting to buy high-quality companies at lower purchase prices. Because of the collateral embedded in this strategy, we recommend it only to investors that are very comfortable dealing with stock options. ------------------------------------------------- If you’re interested in learning more about the cash-secured puts options strategy, I encourage you to read this comprehensive guide: https://www.suredividend.com/cash-secured-puts/ ------------------------------------------------- If you're interested in generating rising passive income over time, you may want to explore Sure Dividend's premium investment research services. Sure Dividend offers investment research through 3 monthly newsletter publications. You can read more about each of these publications below: Sure Dividend (dividend growth stocks): http://www.suredividend.com/subscribe/ Sure Retirement (high yield stocks): http://www.suredividend.com/retirement-subscribe/ Sure Dividend International (international dividend stocks): http://www.suredividend.com/international-subscribe/
Views: 3521 Sure Dividend
Options Trader Begins With $10K Account & Now Trades $300 Million
 
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See the latest videos from tastytrade: http://bit.ly/1pLD2uf In our fourth exclusive interview with Karen the Supertrader, we ask all of the hard-hitting questions about her trading style, strategies and mechanics she implements. Starting with just $10,000 in her account, Karen is now managing over $300 Million. Karen emphasizes the importance of waiting for pull-backs in the market, portfolio allocation and being proactive. ***This video is an interview of a past tastytrade guest, Karen Bruton. We've become aware that she and her firm are currently under SEC investigation for her accounting and reporting practices. Karen is not affiliated with tastytrade in any way other than as a prior guest on our program, last appearing on the network in 2014. We at tastytrade believe in full and transparent disclosure by money managers and we continue to advocate on behalf of the retail trading community.*** ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! http://goo.gl/EaF69C Subscribe to our YouTube channel: http://goo.gl/Szl24S Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: http://goo.gl/EaF69C Download our mobile app, Bob the Trader: http://goo.gl/zgIyco Follow tastytrade on Twitter: https://twitter.com/tastytrade Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade Follow tastytrade on LinkedIn: http://www.linkedin.com/company/tastytrade Follow tastytrade on Instagram: http://instagram.com/tastytrade Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/
Views: 217110 tastytrade
Stock Options (Issuing, Exercising & Terminating Options, Compensation Expense, PIC Options)
 
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Accounting for stock options issued, exercised & some options terminated using the fair value pricing model which uses the stock option price rather than the stock market price as the accounting basis, using the fair value option method the stock price established by the market has no relevance for accounting, the option price is used for accounting, granting the stock options requirs recording compensation expense on the income statement and recording paid-in capital (stock options) equity account for the associated to the expense, upon exercising the options the PIC-Stock Options is reduced and transferred to common stock issued and the associated APIC-Common Stock, terminated options reduces the compensation expense & PIC-Stock Options, On (1/1/X1) Corp-A's Stock Option Included: 1-Granted options to executives to purchase 20,000 shares of $10 par Common Stock, 2-Options granted (1/1/X1) & were exercisable 2-yrs after date granted if still employeed by company, expire after 5-yrs with 2-yr vesting (service) period, 3-Option price set at $50/shr, compensation expense $800,000 based on Fair Value Pricing Model, 4-Following Stock Option activities: a. 3,000 options were terminated on (4/1/X2), employee resigned, market price C/S was $70/share, b. 12,000 options were exercised on (3/31/X3) when market price $80/shr, detailed accounting by Allen Mursau
Views: 1965 Allen Mursau
Barrier stock option
 
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Relative to plain vanilla options, barrier options have an additional feature: c(S,K, H, volatility, T, r) where H is the barrier. The barrier either knocks-in the option (into existence) or knocks-out (out of existence) the option. Due to this "optionality on the option" the barrier is cheaper (lower premium) than its plain vanilla counterpart. Barrier is either: knock-in (up-and-in, down-and-in) or knock-out (up-and-out, down-and-out)
Views: 19804 Bionic Turtle
What Is The Call Premium?
 
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The difference between the call price of a bond or preferred stock and its what is amortization premium on bonds payable? . Call premium investopedia call investopedia terms c callpremium. What is call premium? Meaning of premium as a 5 may 2017 the excess amount over par value bond that issuer willing to pay in order redeem before its maturity date. There are two components to the options premium and they intrinsic value time of call on high cash dividend stocks can get discounted in other words, do not buy a option or sell put when you sense there p&l for short upon expiry is calculated as 6 jun 2015 this makes july less valuable more because parity. Depending on the terms of bond agreement, call premium usually declines as current date approaches maturity read definition and 8000 other financial investing in nasdaq glossary price above par value a or share preferred stock that must be paid to holders redeem premiumadd term watchlistft articles & analysis. In options terminology, the call premium is amount that purchaser of a option must pay to writer supply and demand determines its premium, but famous black scholes pricing model offers common (though somewhat above par value bond issuer holders if redeemed before maturity date. Hence, we see a july call premium. Call premium investopediacall definition & example what is call premium? Definition and meaning businessdictionary mba skool study how to calculate budgeting money. Call premium usually declines with the years of bond's issue date; It is higher for bonds called after 5 than those 10 call price paid to buy option or received sell an. No articles are associated with this term shmoop€™S finance glossary defines call premium in relatable, easy to understand language noun. This is because the writer of call option assumes a option, often simply labeled 'call', financial contract between two parties, buyer seller must agree on initial value (the premium or price contract), otherwise exchange (buy sell) will not take place english[edit]. Call premium (plural call premiums). Summarizing call & put options &#8211why are premiums larger than for near the. Although this can save the company money on interest, it means that definition of call premium in financial dictionary by free online english and encyclopedia. Call premium is the dollar amount over par value of a callable debt security that given to holders when redeemed early by issuer. Finance) the amount over par value an issuer must pay to redeem a callable bond on call dateavailable under in exchange for availing this facility, you have option premium seller writer of. Finance) the amount over par value an issuer must pay to redeem a callable bond on call date premium definition. Call premium financial definition of call dictionarycall nasdaq. Googleusercontent search. What is call premium? Definition of premium (black's definition from financial times lexiconcall dictionary what are options & how to trade them option wiki
Views: 13 SMART Hairstyles
Options, Dividends, and Volatility
 
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Options, Dividends, and Volatility http://www.options-trading-education.com/14393/options-dividends-and-volatility/ There is an excellent discussion of specific options trades in the current online issue of Forbes (http://www.forbes.com/sites/stockoptionschannel/2013/11/11/interesting-april-2014-stock-options-for-cisco-systems/). The article discusses put and call options for April 2014 for Cisco (CSCO). At issue are the price of the put option or call option, the dividend paid by Cisco, and potential market volatility. This is an article for investors who may wish to sell puts or calls on the stock and want to do the arithmetic on how much they will gain or lose using various scenarios. It is an excellent example of the fundamental analysis of options in cases in which picking options is just a matter of arithmetic. Our take on options, dividends, and volatility follows. Options Price and Anticipation of Price Changes As a rule, options writers make more money than those who purchase options. Selling puts can lead to devastating losses if a stock falls markedly and leads to lost opportunity if the stock soars in value. The options trader will want to account for premiums on options, dividends, and volatility. For example, when an investor sells calls and puts on a basically stable stock such as CSCO he limits his risk. When selling puts and calls on a large cap stable stock it is often simply a matter of doing the math. For a refresher on how this is done read the Forbes article. If you are thinking of selling calls and puts in a volatile market on volatile stocks you had better have deep pockets because of the risk of an occasional very large loss. In online options trading remember the triad of options, dividends, and volatility. Adding to Your Dividend and Calculating Return Selling calls and puts on a stable stock that you own can be a good way to add a little cash flow on top of your quarterly dividends. If this is a stock that you have held for a long time you probably have a good idea of what range it trades in. You likely have a good idea of the odds of it rising or falling in price. For example, you may find that there is a reasonable premium available at a reasonable strike price for either a call or a put on a stock that you own. After considering premiums on options, dividends, and volatility you sell a put or a call or both. The stock stays at pretty much the same price as when you sold the options contracts. When the contract expires you have pocketed the premium for the put or call or both and perhaps have received a dividend payment or two. If you pick the right contract on the right stock you may double your dividend or do even better. Missing Out on Opportunity The ever-present risk of selling a call contract on a stock that you own is that you can miss out on the rally of the century. The stock will be subject to a takeover bid or will benefit from the introduction of a brand new product and rise in multiples of the strike price at which you sold. Along the way you will have gained the premium for selling a call contract and even a dividend or two but will miss out on just why it is that many folks own stocks. It is all about accounting for options, dividends, and volatility. Losing Your Shirt with Put Options When you sell a put option on a stock you own you run the risk of having to buy more of the stock at the strike price when the price is falling dramatically. This can be very costly and is why many investors only sell calls on stocks that they own and virtually never sell puts. Options and Volatility Buyers of options contracts hope for volatility and sellers hope for a stable market. The math for selling options is easy if you assume little volatility and predictable dividend yields. There are kinds of options trading that offer great reward but also great risk. And there are kinds of trading that are more manageable and offer predictable but smaller gains. When there are good premiums options, dividends and volatility will determine if selling calls or puts is a good idea. http://youtu.be/cdvmHwBc3o0
Views: 201 OptionsTips
Example: Fair Value Hedge - Interest Rate Swap | Intermediate Accounting | CPA Exam FAR
 
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Like us on Facebook: https://www.facebook.com/accountinglectures Visit the website where you can search using a specific term: https://www.farhatlectures.com/ Connect with LinkedIn: https://www.linkedin.com/in/mansour-farhat-cpa-cia-cfe-macc-2453423a/ Financial forwards, financial futures, Options, Swaps, speculator, Arbitrageurs, notional amount, call option, put option, intermediate accounting, Intrinsic value, time value, option premium fair value hedge, cash flow hedge, speculation, interest rate swap, cash flow risk, spot price, Unrealized Holding Gain or Loss—Income, Unrealized Holding Gain or Loss—equity, cpa exam, cfa exam,
12C TSG 7 12 Employees Stock Option Plan mp4
 
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New amendments in company accounts of Class XII CBSE Board Exams.
Views: 15056 Gagan Kapoor
Cash Flow Hedge: Interest Rate Swap | Intermediate Accounting | CPA Exam FAR
 
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Like us on Facebook: https://www.facebook.com/accountinglectures Visit the website where you can search using a specific term: https://www.farhatlectures.com/ Connect with LinkedIn: https://www.linkedin.com/in/mansour-farhat-cpa-cia-cfe-macc-2453423a/ Financial forwards, financial futures, Options, Swaps, speculator, Arbitrageurs, notional amount, call option, put option, intermediate accounting, Intrinsic value, time value, option premium fair value hedge, cash flow hedge, speculation, interest rate swap, cash flow risk, spot price, Unrealized Holding Gain or Loss—Income, Unrealized Holding Gain or Loss—equity, cpa exam, cfa exam,
Issuing Stock Warrants with Other Securities | Intermediate Accounting | CPA Exam FAR | Chp 16 p 3
 
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warrants, stock warrants, proportional method, incremental method, stock options, stock warrant, paid-in capital, detachable, nondetachable warrant. stock rights, preemptive right, preemptive privilege, stock option, compensation expense, restricted stocks, unearned compensation, employee stock purchase plan, grant date, exercise date, exercise price Stock options, convertible securities, convertible preferred stock, conversion feature, book value method, fair value, induced conversion, convertible debt
W is for Warrants - The Elite Investor Clubs A - Z of Investing
 
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As we reach the letter W in our A to Z of investing we really are on the home straight now. And today we’re going to cover one of the more arresting aspects of investing because W stands for Warrants – did you see what I did there?! Earlier in this series we talked about stock options, which give you the right but not the obligation to buy or sell shares at a particular price on or before a particular date. If you remember, you can buy a call option if you think the price is going up or a put option if you think the price is going down. The main advantage over buying the actual shares is leverage. For the same amount of money you can control a larger number of shares and therefore achieve a bigger bang for the buck IF your hunch proves correct. Options are bought and sold between investors without any involvement from the underlying company. Stock warrants offer the same benefits as stock options but have two fundamental differences. First of all, the warrants are issued by the company itself rather than another investor. So if you think Marks and Spencer shares are going up, you might look for call warrants issued by the company rather than taking an option on some shares belonging to another investor. The second difference concerns what happens when the option or warrant is exercised. If you exercise a call option with another investor to buy Marks and Spencer shares at five pounds, you’ll take delivery of the shares he owns. If you exercise a warrant to buy those same shares at five pounds, Marks and Spencer will provide the shares to fulfil the transaction. Why would the company do this? Simple. It’s a means of raising money. Why would you use warrants rather than options? Firstly, because they tend to be cheaper to buy than options so you could control even more shares for the same amount of cash. And secondly because warrants have a much longer lifespan than options. An option term will usually not be more than two or three years, whereas warrants can be valid for up to fifteen years. So if you’re a medium to long term trader you might find warrants acquired directly from the company can give you the perfect balance between risk, timescale and investment. In other words, you’ve got a much longer time period to prove your hunch than with options. A variation on the warrant theme is covered warrants, sometimes called naked warrants. Not sure why, you’d think if they’re naked they should be uncovered warrants. Anyway, these tend to be issued by financial institutions rather than companies and can have a mixture of financial instruments underlying them. This could be equities, bonds, currencies and so on and covered warrants will trade on a number of stock exchanges. The premium you pay for the covered warrant is the most you can lose – there’s no concept of margin calls so your liability is limited. They are called covered because the issuer will cover themselves or hedge their bet by buying the underlying financial instrument in the market. These tend to be shorter term than equity warrants, usually six to twelve months. They have more in common with options than traditional warrants, though they tend to have longer maturity dates. Just like spread betting, futures and options, warrants are a form of trading that you should only get involved with after you’ve been trained by people like my friends Marcus de Maria and Siam Kidd. They’re not for beginners and you can easily lose all your money if you’re not careful. On the other hand, if you know what you’re doing warrants can be cheaper and more flexible than options because they give you a longer period in which to be proved right. Put the work in so that you’re more often right than wrong and you’re on the way to making some serious wonga!
Views: 9315 Elite Investor TV
Basic Look at Stock Options: LEAPS
 
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- LEAPS = Long Term Equities Anticipated Securities - Stock options that are longer than one year - Buying out option premium on a longer term horizon - Bought a year or more in advance - Options that expire and many of them decay over time much slower than shorter term options - LEAPS allow you to have more time within the contact - Can also be used to purchase protection for your stock ★ SUBSCRIBE TO MY YOUTUBE: ★ http://bit.ly/addtradersfly ★ ABOUT TRADERSFLY ★ TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing. Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better. Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us! STOCK TRADING COURSES: -- http://tradersfly.com/courses/ STOCK TRADING BOOKS: -- http://tradersfly.com/books/ WEBSITES: -- http://rise2learn.com -- http://criticalcharts.com -- http://investinghelpdesk.com -- http://tradersfly.com -- http://backstageincome.com -- http://sashaevdakov.com SOCIAL MEDIA: -- http://twitter.com/criticalcharts/ -- http://facebook.com/criticalcharts/ MY YOUTUBE CHANNELS: -- TradersFly: http://bit.ly/tradersfly -- BackstageIncome: http://bit.ly/backstageincome
Introduction to hedging ch 11 p 5 CPA exam Intermediate Accounting CMA exam
 
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Hedges, accounting for hedging, hedging, Derivative securities, hedging, A forward contract, futures contracts, commodity price risk, swap contract, interest rate swap, foreign exchange currency swap, Options Contract, CPA exam, CFA exam
Forward contract introduction | Finance & Capital Markets | Khan Academy
 
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Forward Contract Introduction. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/forward-futures-contracts/v/futures-introduction?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/option-expiration-and-price?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 270734 Khan Academy
What Is Option Pricing
 
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Option pricing refers to the amount of the option premium per share at which an option contract is traded in the live market.  Premium is the price paid or received when buying/selling options. This price can be split into two components. Intrinsic value = Equity for In the Money Options Extrinsic value = Time, Volatility, Risk-Free Interest Rates The option price is calculated using the option pricing model known as the Black Scholes Option Pricing Model. Join our free online community of active traders https://tackletrading.com/ and surround yourself with professional coaches and experienced, successful traders as well as new burgeoning traders looking for the right systems to trade and success-minded people to surround themselves with. Make sure to sign up for your free 15-day trial and take advantage of our powerful trading tool box, the Tackle Trading Trade Center, get our weekly Market Scoreboard and Scouting Reports as well as our daily stock market reports. SIGN UP NOW: http://bit.ly/tackle-15-day-free-trial _________________________________________________________________________________________________ DISCLAIMER: Tackle Trading LLC is providing this live broadcast and any related materials (including newsletters, blog post, videos, social media and other communications) for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Read full disclaimer here: https://tackletrading.com/legal-disclaimer/
Views: 74 Tackle Trading
#36,(companya/cs:employee stock option scheme,sweat equity shares&uses of securities premium reserve
 
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This video specifies meaning of 1-employees stock option scheme 2-sweat equity shares 3-prefrential allotment 4- utilization of securities premium reserve in very simple mannner Accountonomics on your tips accounts video 36 My previous video link https://youtu.be/90KuL-dB4zc accounts video 30 (t s grewal question no 103) link https://youtu.be/wMjrMGBmbKs accounts video 31( t s grewal question no 104) link https://youtu.be/Ub2s6vp_BIo My previous video link https://youtu.be/rVdm7G3HSmo Must watch videos.. because in these videos not only concept is explained but all type of practical questions is also discussed 1-Company accounts for class 12th https://www.youtube.com/playlist?list=PLhpvDcY-ThELaSMnRFEXQzj9O0ccPrzF2 2- Microeconomics full concepts, chapters & practical questions (Class 12) https://www.youtube.com/playlist?list=PLhpvDcY-ThEIalv7gsK1S8EILRf-VsV3g 3- An introduction to micro economics (chapter 1 for class 12) https://www.youtube.com/playlist?list=PLhpvDcY-ThEIiQ3mO0Thmu-7L4CFHJaEx 4- consumer behaviour and utility analysis (chapter 2 for class 12) https://www.youtube.com/playlist?list=PLhpvDcY-ThEIalv7gsK1S8EILRf-VsV3g 5- Theory of Demand https://www.youtube.com/playlist?list=PLhpvDcY-ThEJuIPeNp_KCTpjAFS7C2_mK 6- Elasticity of Demand https://www.youtube.com/playlist?list=PLhpvDcY-ThEKXnj60ZgqHAi34-CjgRQli 7- Theory of supply & elasticity of supply https://www.youtube.com/playlist?list=PLhpvDcY-ThELbBy6BDYZrFEd2iU1xd_uC 8-Market equilibrium and price determination https://www.youtube.com/playlist?list=PLhpvDcY-ThEJ05vTSHkgxgFk5KOPONmq8 9-Market equilibrium(Demand and supply) and price determination full chapter https://www.youtube.com/playlist?list=PLhpvDcY-ThEKKCc-I1GN8xE8ny5FFg8c2 10- Theory of cost-its tyes, different types of relations between costs https://www.youtube.com/playlist?list=PLhpvDcY-ThELo3HMEATxP2DFz_xPVJbFY 11-practical questions of microeconomics on various topics: consumer equilibrium, elasticity of demand & supply, market equilibrium and price determination, theory of production etc. https://www.youtube.com/playlist?list=PLhpvDcY-ThEJdovJklH_5IlBoncF90uJo -~-~~-~~~-~~-~- First time in the history of youtube Please watch: "#65,economics:Microeconomics full course(all chapters) in one single video" https://www.youtube.com/watch?v=xdjw_-9FaGs -~-~~-~~~-~~-~-
Trader - Made $41 Million Profit in 3 Years Option Trading (Karen the Supertrader)
 
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Watch the 2014 1 hour interview here - http://goo.gl/9BbilO Karen the Supertrader went from her day-job as a CFO to an option trader and turned $100,000 in 2007 into $41 million by 2011. This is her story, as told by Karen herself with Tom Sosnoff on tastytrade. ***This video is an interview of a past tastytrade guest, Karen Bruton. We've become aware that she and her firm are currently under SEC investigation for her accounting and reporting practices. Karen is not affiliated with tastytrade in any way other than as a prior guest on our program, last appearing on the network in 2014. We at tastytrade believe in full and transparent disclosure by money managers and we continue to advocate on behalf of the retail trading community.*** ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! https://goo.gl/OTv3Ez Subscribe to our YouTube channel: http://www.youtube.com/user/tastytrade1?sub_confirmation=1 Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: https://goo.gl/OTv3Ez Follow tastytrade on Twitter: https://twitter.com/tastytrade Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade Follow tastytrade on LinkedIn: http://www.linkedin.com/company/tastytrade Follow tastytrade on Instagram: http://instagram.com/tastytrade Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/
Views: 1106166 tastytrade
Example: Premium Liability/Expense | Intermediate Accounting | CPA Exam FAR | Chp 13
 
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premium liability, coupon liability, current liability, accrued liability, accrued expenses, current assets, warranty expense, Asset retirement obligation, payroll expenses, payroll tax, payroll entries, FICA Social security, FICA medicare, FUTA, SUTA, premium liability, current liability, accrued liability, accrued expenses, current assets, warranty expense, Asset retirement obligation, payroll expenses
Forex - Spot/Forward rates and Calculation of Premium and Discount - By CA Gopal Somani
 
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This Video explains the Concept of Spot and Forward rate, Calculation of forward Premium and Discount in foreign Exchange Management in Financial Management. This video will be helpful for CA, CS, CMA Students.
Views: 35999 CA Gopal Somani
SOLD $86,213 WORTH OF CALL OPTIONS TODAY | Road to the 2 Comma Club Day 513
 
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June 19, 2018: Today I did a ton of selling because stocks were going down again after Trump announced more trade tariffs... I should just take the money and buy a Tesla lol. Interested in a Road to the 2 Comma Club t-shirt and want to support the channel at the same time? Check out my post on twitter and DM me there if you're interested in picking one up from the first ever batch! https://twitter.com/Road2CommaClub/status/1029361100582739970 General Market news: https://letstock.net/dow-futures-up-over-100-points-as-trade-fears-calm-ebb-for-now/ https://www.marketwatch.com/story/hedge-fund-boss-who-predicted-87-crash-says-next-recession-will-be-really-frightening-2018-06-19 If you want to support the channel, please consider clicking one of the affiliate links below, thanks so much! My Coinbase referral link: https://goo.gl/YLEkQB My #1 favorite book about wealth - The Richest Man in Babylon: http://amzn.to/2rAAxjI Book I'm currently reading about options (for beginners): https://amzn.to/2rcIoVm Join the conversation on Facebook! https://www.facebook.com/groups/1979804672275114/ DISCLAIMER: This video is for entertainment purposes only and should not be interpreted as stock advice. The strategy I'm adopting is incredibly risky and should not be copied unless you're completely comfortable with the fact you could lose your entire portfolio within a week's time. I'm not liable if you lose any money in the stock market based on information provided in these videos. Always do your own research and evaluate ways to reduce your risk, consulting a professional if necessary.