(Answered) An investor can profit on changes in an equitys market

Finance

An investor can profit on changes in an equity's market price without ever having to actually put up the money to buy the equity. The premium to buy an option is a fraction of the cost of buying the equity outright. Additionally, in buying options, risk is limited to the premium paid for the option - no matter how much the actual stock price moves adversely in relation to the strike price.

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