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Options: Puts, Calls, and Warrants Learning Goals After studying this chapter, you should be able to: LG 1: Discuss the basic nature of options in general and puts and calls in particular, and understand how these investment vehicles work. LG 2: Describe the options market, and note key options provisions, including strike prices and expiration dates. LG 3: Explain how put and call options are valued and the forces that drive options prices in the marketplace. LG 4: Describe the profit potential of puts and calls, and note some popular put and call investment strategies. LG 5: Describe market index options, puts and calls on foreign currencies, and LEAPS, and show how these securities can be used by investors. LG 6: Discuss the investment characteristics of stock warrants, and describe the trading strategies that can be used to gain maximum benefits from this investment vehicle.
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