any, in the same notional S&P 500 investment.

Equity options

Shares also have a notional principal amount. The notional amount refers to the total amount changing hand in case the option is exercised. Some people refer to it as nominal instead of notional. The formula is as follows:

Notional amount = number of options * multiplier * strike price.

The notional value is the value of what is controlled, rather than the value of what is owned. If stock option contracts are being

1.Previous
3.Next