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Does a corporation on whose stock an option is written receive any funds from the transaction? Can...

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Finance

Does a corporation on whose stock an option is written receiveany funds from the transaction?

Can option holders vote for corporate directors?

What is the objective of a hedge portfolio in the BinomialOption Pricing Model?

Answer & Explanation Solved by verified expert
3.9 Ratings (482 Votes)
Option is just the like betting between two people on the price of the stock where one person expects the price will go up and other person thinks the prices will go down The winner in the betting gains Option is just secondry market game there is no involvement of company in option transaction    See Answer
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Does a corporation on whose stock an option is written receiveany funds from the transaction?Can option holders vote for corporate directors?What is the objective of a hedge portfolio in the BinomialOption Pricing Model?

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