cornacopia16 asked:


For instance, can I simply trade the contract cost without ever having an obligation to the shares? For instance, let’s say I buy a call contract at $2.50 ($250.00) and the next day the stock rises and the same call contract is worth $2.55 ($255.00). Would I be able to sale the same call contact for the $2.55 with no other obligations even before the expiration? Does it also work that way with put options?
Thank you

bionicturtledotcom posted video:

This illustrates how an interest rate swap can transform a floating-rate obligation into a fixed-rate obligation and vice-versa