List the Three-Steps of the Adjusting Process

question 159

Short Answer

List the three-steps of the adjusting process.

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Definitions:

Option Positions

Refers to the holdings an investor has in options contracts, which could be either calls (betting the stock will rise) or puts (betting the stock will fall).

In The Money

A term used in options trading to describe an option that would generate profit if exercised immediately, because the underlying asset's price is favorable to the option's strike price.

Margin Call

A call from a broker to an investor to add more money or securities in order to safeguard against potential losses.

Option Clearing Corporation

An organization that acts as both the issuer and guarantor for option and futures contracts, ensuring the fulfillment of contract obligations.