(Also known as Mid Price) The price between the best price of the sellers for a trading
unit of a given security and the best price of the buyer of a trading unit of a given a given security.
Essentially, a rise in volatility causes the amount of time premium built into the
options of a given security to rise, while a decline in volatility causes the amount of time premium to fall.
«Qualitative factors suffer from the same basic problem: It is impossible to determine the extent to which they are already reflected in the
price of a given security.....
• Diversification: To reduce risk, BDCs may not invest more than 5 % of their assets in any single security, nor own more than 10 %
of a given security's total voting assets, nor invest more than 25 % into businesses they control or businesses within the same industry.
You may purchase a call option if you expect the price
of a given security to exceed its exercise price (i.e., the price at which you would be entitled to purchase the stock, according to the option contract terms).
On the other hand, over the course of a market cycle lasting five or 10 years and including a bull and a bear market, the price
of a given security is likely to change significantly.