option

Since the company is the writer of the call option on stocks, the company gets paid (the warrant buyer will pay the price of warrant = w as premium) and hence I expected the market cap to increase by Mw (M = number of warrants). But instead, the chapter says the market cap is reduced by Mw. Is...

Hi David, I was wondering if you could give an example of how an option on a futures contract would work concretely? I am having a hard time figuring out what are the actual steps on this one. Let's say we have a call for instance - is the strike price the same as the price of the underlying...