Straddle and strangle are two options trading strategies. These are volatility strategies. Traders can make profits with these strategies regardless of the market price movement direction. However, both strategies involve significant risks and sophisticated skills to implement correctly. Straddle A straddle is a trading strategy in which a trader holds both put and call options. […]
Straddles Vs Strangle: What’s the Difference? Read More »
Straddle is a trading strategy that involves buying two options contracts simultaneously; a call option and a buy option. Both contracts should have the same strike price and the same expiration date. It is neutral options trading strategy. Traders use it to earn profits in a volatile market. The profits with a straddle strategy can
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A spread is a trading strategy in options trading that involves two long or short options together. Spreads can be arranged in several ways by adjusting their strike prices for long or short positions, volatility, and expiration dates. In that sense, Options spreads give you more control and choice over options trading. However, these strategies
Call Spread Vs Put Spread: Definition, Types, and Key Differences Read More »
A lease is an agreement between two parties for using an asset. The party that owns the asset is the lessor, while the other party is the lessee. The lessee uses the leased asset and pays a regular fee to the lessor. Before the transaction, both parties enter into an agreement that defines each party’s
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Overview Cost is a term used in business and finance to represent the monetary value of a company’s spending. Usually, companies incur expenses in various fields, such as repair and maintenance, salaries, etc. However, these do not represent cost. Instead, the term cost refers to any expenses that companies incur on producing assets. Therefore, an
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What are Equity Shares? Equity shares, also known as ordinary shares, are stocks that shareholders can buy to receive ownership of a company. The proportion of their ownership depends on the fractional number of shares they hold of the total shares issued by the company. These shares also usually come with voting rights, which allows
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The term lease describes an arrangement where one party agrees to rent out their property to another. The party that owns the asset is the lessor, while the other party that holds and uses it is the lessee. Usually, the lessee pays the lessor a specific amount in exchange for using the asset. There are
Leveraged Lease: Definition, How It Work, and More Read More »
For most companies or businesses, obtaining loans is essential in continuing operations. These loans constitute debt finance for them. There are several benefits that come with this finance source. For example, companies can tax advantages when paying interest on debt finance. However, debt finance may also come with some disadvantages. Every company uses debt finance
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For auditors, it is crucial to ensure that they are independent of the client’s activities. On top of that, they must ascertain objectivity in their dealings with the client. In some cases, however, their independence and objectivity may be under scrutiny. These are when auditors face threats, which can lead to adverse effects. Ultimately, these
Advocacy Threat to Independence and Objectivity of Auditors: All You Need to Know! Read More »
Threats during audit engagements can influence auditors to provide biased or partial opinions. However, it is crucial for auditors not to allow these threats to realize. In most cases, auditors must identify these threats and take the necessary actions to prevent them. This process usually happens before auditors start their work on an engagement. There
Intimidation Threat to Independence and Objectivity of Auditors: All You Need to Know! Read More »
