What is a put option and what is a call option, Taxation

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What is a put option and what is a call option

Problem

Question I

An investor is holding many Commonwealths Bank Limited shares in an investment portfolio and wishes to protect the value of the investment. The commonwealth Bank Limited shares currently trade at $90.50. The investor buys a put option with an exercise price of $240.00 per share and a premium of $1.50 per share.

i. What is a put option and what is a call option?
ii. Explain the premium and the exercise price.

Question II

List Foreign exchange market participants, briefly explain the roles of any three participants.

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Taxation: What is a put option and what is a call option

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Taxation: What is a put option and what is a call option

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