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In a easy state of affairs, if you buy a name option and hold it until expiration, you'll revenue if the price of the stock finally ends up being superior to the sum of the strike value and the premium. There are additionally substantial transaction costs related to shopping for and promoting transport shares, because of the broad spreads between the ‘bid’ and ‘ask’ worth, and their low trading volumes, which make it tough for bigger institutional traders specifically to maneuver in and out of positions without transferring the inventory price and chopping into trading profits. Larger, usually institutional traders have an option with an ETF like BDRY that dramatically reduces transaction costs. The fourth and newest possibility for investing in dry bulk freight is via an ETF, BDRY, that invests in a mixture of FFAs tracking charges within the Capesize, Panamax (65,000-90,000 DWT) and Supramax (45,000-60,000 DWT) bulker categories

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