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pls clarify
by sidney sheldon on Nov 22, 2008 08:30 PM   Permalink | Hide replies

In Both call and put options,only the buyer has advantage of whether to buy/sell in spot market at a future time.

does this mean option is always profitable?

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  Re: pls clarify
by rajeev on Dec 16, 2008 03:45 PM   Permalink
The buyer of an option pays certain amount of premium on each underlying asset to the seller..so when the spot price changes and if the buyer is at loss by exercising his option the expirydate,the buyer doesnt exercise his option and let the option contract lapse.and the premium paid is not refundable..

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The above message is part of the Discussion Board:
What are futures and options?