To Restrict his exposure, Bob has many options. He should purchase again his uncovered calls at a decline, purchase the stock to capture the dividend, or sit limited and hope not to be assigned. If his calls are assigned, nonetheless, he will have to spend the $250 in dividend earnings, Along with masking the price of providing 500 shares of ABC in

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The general risk degree must take into account the probability on the risk arising plus the affect to your challenge. These two scores may be multiplied to give you the Over-all risk ranking for every risk party. This may be often called the Likelihood-to-Affect (PI) ratio. Usually if The 2 scores are lower the general risk could well be very low.T

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