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Identify and explain the steps in formulating a strategy.
Strike Price
The specified price at which the holder of an option can buy or sell the underlying security.
Market Price
The current price at which an asset or service can be bought or sold in a marketplace, determined by supply and demand dynamics.
Strike Price
In options trading, the predetermined price at which the holder of the option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.
Put Option
This is a financial deal which provides the participant the freedom, but not the compulsion, to part with a given amount of a principal asset at an established cost during a set span.
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