Tag: Legal Framework

Introduction:Setting and adjusting strike prices is a crucial aspect of options trading, allowing traders to establish their desired risk-reward profiles. However, it is essential to understand the legal implications and considerations when determining strike prices. In this article, we will explore the legal landscape surrounding the process of setting and adjusting strike prices in options trading. Regulatory Framework and Exchange Rules:Options trading operates within a regulatory framework established by financial authorities, such as the Securities and Exchange Commission (SEC) in the United States. This regulatory framework aims to promote fairness,...