TERMIUM Plus®

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gold call option [1 record]

Record 1 1991-10-29

English

Subject field(s)
  • Stock Exchange
  • Investment
CONT

The price of gold on April 5 is US$ 390 per troy ounce. An investor is of the opinion that it may very well rise in the next few months. He does not own gold and is faced with the alternative of either buying gold outright through a gold dealer (i.e., in the cash market) or investing in gold options. Unwilling to tie up too much capital in buying gold, he decides to buy ten gold call options - each gold option is for ten troy ounces of gold - which give him the right to buy 100 troy ounces of gold at US$ 425 per troy ounce until the Saturday following the third Friday in August (10 gold calls/Aug/425).

Key term(s)
  • call gold option contract
  • call gold option

French

Domaine(s)
  • Bourse
  • Investissements et placements
CONT

Le prix de l'or, le 5 avril, est de 390 $ US l'once troy. Un investisseur est d'avis que ce prix peut très bien monter au cours des mois qui vont suivre. Il ne possède pas d'or et il doit donc décider s'il faut acheter de l'or (sur le marché au comptant) ou investir dans des options sur l'or. Comme il ne tient pas à immobiliser une trop grande partie de son capital en achetant de l'or, il décide d'acheter dix options d'achat (chacune porte sur dix onces troy d'or) qui lui donnent le droit d'acheter 100 onces troy d'or à 425 $ US jusqu'au samedi suivant le troisième vendredi d'août (10 options d'achat or/août/425).

Spanish

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