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Basics of Option Contracts and How to Obtain Price Quotes Discussion
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In 1973, organized stock options trading began when the Chicago Board Options Exchange (CBOE) was established. Since then, options trading has grown enormously. We discussed and examined a number of concepts and issues surrounding stock options. Discuss the following (500 word minimum):
1. The basics of option contracts and how to obtain price quotes.
2. The difference between option payoffs and option profits.
3. The workings or concepts behind some basic option trading strategies.
4. The logic behind the put-call parity condition.
