Monday, November 24, 2008

Student Loans the next financial crisis

Low interest rates have allowed institutions to increase their tuition and allowed students to consequently borrow more for their higher education. Now many with over a $100,000 in loans have to find jobs which will justify their loans. Many with large loans currently have the inability to consolidate their loans at low interest rates. Their rates are usually adjustable yearly. Luckily most loans were backed by the federal government. However, many did take out private loans from banks.

Monday, November 10, 2008

Naked Put Calculator


Naked Put Calculator

It's a risky bet. Sell a put option, then agree to buy the stock if the price drops below the strike price of the option. If the strike price is 9 and the stock drops to zero, you still pay 9 dollars. If the stock stays above the strike price of 9, you keep the price of the option as pure profit.