Payoff diagram for Put Options. http://www.financial-spread-betting.com/ PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! A put option gives us the right but not the obligation to sell a specific underlying asset at a specific strike price at a specific point in time in the future. Let's examine two different payoff diagrams to see what our option contract will be worth at expiry and what our profit and loss will be (dependent on what we paid as premium for the option).
- Let's say Company XYZ trading at $50
- We have purchased a put option with a strike price of $50 to expire at some fixed point the future.
- Let's assume the Put carries an Option Premium of $10
- If the company went bust and it ended traded at $0 - that's great for us as a put option holder as we can sell the stock option at $50.
- Let's say the price of XYZ ends at $10. The put option would have $40 of value.
- Let's say the price of XYZ ends at $60. The put option wouldn't have any value.
The maximum loss is limited to the price of the put option premium irrespective how high the stock price rises.
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There are 3 major pitfalls with reaching consensus around the outcome of an event.
These fully specified, manipulation resistant, and publicly verifiable events form a necessary foundation for sound prediction markets. Without this foundation, prediction markets are subject to confusion, manipulation, and abuse. Though sometimes tricky, many prediction events exist that satisfy all of the criteria listed above. As the world moves forward into the realm of decentralized prediction markets, it will be important to keep in mind the pitfalls associated with many naive prediction events.
Sia , by Nebulous Inc., is a blockchain-based decentralized cloud storage platform.
Capital Markets Blockchains Are Finally Getting Go-Live Dates.
Assembled in New York this week, a handful were even confident enough to give firm timetables for production. For those tired of blue-sky talk, it was refreshing to hear large-scale financial infrastructure projects discussed openly and frankly, in clear terms of where they are and when we can expect to see things going live.
Underscoring the seriousness of the undertaking, ASX recently produced an 87-page progress report. Roll-out is targeted for late 2020 or early 2021.
In the weeds.
The enormity of such a project may not be obvious to those unfamiliar with the creaky plumbing of the capital markets.
At the completion of phase one, DTCC will have nodes set up internally for every firm that it knows will run one, plus some general nodes that will take care of supporting the transactions and processing for the firms that do not wish to support a node of their own.
For this project, DTCC has taken a multi-vendor approach. Ethereum-inspired startup Axoni is providing the technology, with IBM helping to manage the project, and R3 providing best practice guidance on areas like selecting the right data models.
Luxembourg is the largest fund management hub outside of the U.S. The jurisdiction holds many trillions of dollars worth of assets under management.
The KPMG-led project includes banks like BNP Paribas, Credit Agricole and others, as well as over 400 asset managers. The technology used is ethereum-based Quorum, the popular open-source project run by JP Morgan.