investments 3

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?