Discussion
Discuss the following derivative vehicles and strategies:
• Puts
• Calls
• Straddles
• Collars
• Swaps
• Futures
• Covered call
Be sure to address the following question in detail:
• When would each be used?
Be sure to define what each strategy/investment is, provide an example, and discuss when they should be used. For example, what is a put? When would an investor use a put? Why? What do they think about the associated stock? What happens if they are right? What happens if they are wrong?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.