OMG super easy I clicked here http://mbabullshit.com/ I'm shocked and blown away by this 3 minute video If You Liked it, Support my Free Videos at https://www.patreon.com/MBAbull Imagine a stock price is $100. You do NOT want to buy it yet right now, but you're thinking that you MIGHT want to buy it in the future. However, you're worried that the price might go up in the future to $120 or even more. Then you'll have to buy it for $20 more money. But then... a financial company offers you a contract which sounds great. If you pay the financial company a fee of $1 right NOW, you would be allowed to buy this stock from this financial company in the future for only $100... even if the price goes up to $120 or even more That way you would NOT have to pay an extra $20... you would only lose the $1 fee. On the other hand... if the price of your stock went DOWN in the general stock market to $80... you could CHOOSE to NOT buy it from the finance company at $100, and instead choose to buy it in the market at the $80 market price... so that you can get a better price. Actually, this contract exists... it's called a "call options" contract... because you have the "option" or the CHOICE to use this contract to buy your stock from the finance company at a specified price... even if the stock price goes higher in the general stock market. You also have the "option" or CHOICE to NOT use it if your stock price goes LOWER in the general stock market! Options contracts are normally valid for a certain duration of time. In real life, these options contracts are bought and sold in an options exchange.
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Duration: 2m 45s
Rating: 150