Your Questions About Paper Trading Options

Susan asks…

which Walking dead comic book should i buy?

there are three difference kinds of walking dead comic book options. The first is the trade paper back(volume). There are currently 15 volumes. The second is the book and currently there are 7 books. The last option is the Compendium option. please give me in detail the difference of each comic. thanks!

John answers:

They are the same story, just in a different form of book. If you haven’t read them, get the trade paper backs. It’ll be cheaper. If you have read them and are looking to collect them, then drop the money on the compendium.

David asks…

Carbon trading game.?

I need to do a class activity for my presentation in school, and I figured doing a carbon trading game on my topic (global warming) would be pretty easy and simple. However, I’m not 100% sure how it would work. It has to be 3 minutes long at the most, so it has to be pretty short.

I was thinking I could give everyone in the room a piece of paper, which lists how much above the allowed CO2 level they are, or how much below it they are. Then each person would start with a certain amount of money (say $10,000), so those who have too much CO2 levels would have to trade with those who don’t use as much,

I’m not too sure what the objective should be though. If I make the objective to just make as much money as you can, then no one would want to buy shares from others.

I guess I could always make two separate objectives. One could be that those whose CO2 levels are above the cap would have to try and balance it out by buying shares from others, while those who have extra shares could have an objective to sell as much as they can to make as much money as possible.

Also, I want to be able to throw in an option for using alternative energy sources, since the whole point is to promote use of those. I was thinking I could make it so that would cost money, but reduce their CO2 levels. However, this is still a capitalist society, so some people would have to “lose” the game by not getting below the cap, or by losing all of their money, and by throwing in this option it makes it too easy to win the game. If you guys have any better suggestions I’m all ears.
@Sushil: I’m familiar with that Carbon Trading Game. However, it’s meant to last for a white (over an hour). I only have 3 minutes.

John answers:

Carbon trading poker.

Five kinds of player: Scientist, Fossil, Poker Joe, Denier, Politician.

Scientist: Shuffles deck, deals, periodically adds wild cards to the deck and gradually increases the number of cards as well. Its objective is to guess the average value of the cards remaining in the deck. Scientist should report all instances of cheating but has no power to do anything about them except fine a Poker Joe two tokens and a Denier one token for each infraction. The fines are put into the pot in the next two rounds. When speaking, Scientist must use the word “forcings” at least once every second sentence.

Fossil: This is the House. Fossil holds everyone’s cards as they are dealt and tells them privately what they are, but does not have to do so truthfully. After each round, each “Poker Joe” is given two of his/her cards to hold him/her self for the next round. Fossil also sells cards to players and can swap cards of Poker Joes’ for inferior ones of Deniers. Fossil also holds the pot secretly, but has to let Scientist look at it after every round, and decides the Poker version of each round. Fossil wins if it plus the Deniers accumulate more than 3/4 of all the chips.

Poker Joe (at least three): These are “regular” poker players, except they get cards only two a time, and only after Fossil has held them without showing them for three rounds. Fossil tells them what the cards are that it holds for them. There is only round of betting, no raises, and the ante rises slightly from each round to the next. The winner is the one with the most chips and least cards at the end. Poker Joes can cheat, but if a scientist catches one of them for the third time, he/she loses all chips and becomes a Denier player from then on. If a second Poker Joe is caught cheating for the third time, he gets an extra ration of junk food, but plays after that as a Politician (see below).

Deniers (at most two, plus at most one ex-Poker Joe): Have the same card distribution and same objectives as Poker Joe, but are docked by Fossil two chips for each round where they do not try to cheat. They can cheat by stealing from the pot, and grabbing cards from other players. They can also kick the table over, but only once every third round, and when that happens every Denier and Poker Joe loses all his or her chips to Fossil and Scientist is in charge of estimating how many each player should have restored (but 1/3 of the amount to be restored remains with Fossil).

Politician: Does not play. Every second turn takes up to two chips from each player and redistributes them. Plays slightly loud and rather disagreeable music, and serves tasty junk food. May tell off-color jokes and is allowed to overrule Scientist once for each time the table is kicked over by a Denier. It repeats every fourth statement of Scientist but must garble at least part of the message. Politicians cannot win or lose the carbon trading game, but collect a cover charge from every other player equal in toto to the cost of their drinks from the bar, plus the cost of all junk food served, plus one taxi cab fare home each afterwards.

Trading: Now comes the carbon trading! Players can first of all BUY cards from Fossil in exchange for chips. Carbon Cards are much cheaper but are held only for one round. Alternative Fuels Cards cost on average 10x as much (the price varies based on a die cast by Scientist) but can be recycled for up to 10 rounds, EXCEPT that if an Alternative Card is stolen by a denier it lasts only two rounds for him/her, after which everyone calls out “Hypocrite.” Players can TRADE one or both of the two cards they hold in their hand with other players. Two trades max per player per round, and every time this happens all the Deniers must shout “Socialism.”

Al Gore Card: This is the Joker card. It acts as a wild card unless another player calls the round and has a 2 or 3 of spades with a big Texas Brand W on it which wipes out the Al Gore Card. If a Poker Joe gets the Gore Card, he is allowed to look at his cards held by Fossil, but only after listening privately to two minutes of Politicians’ sick music full blast. If a Denier gets the Al Gore card, he cannot use it as a wild card but is allowed to kick over the table and grab as many chips as he can, but then has to trade half of them for people’s leftover junk food and actually eat at least one full mouthful of it.

Chips: At the beginning are distributed 1/3 to Fossil, 2/3 evenly spread to all players.

Thomas asks…

Is Ron Paul still in living in the 1840s ? This man doesn’t understand how today’s economy works?

Read this and learn something Paultards.

No country uses the gold standard anymore. If they did, we’d be all screwed we had a recession. A federal reserve exists for a reason. When there’s economic slowdown which can be potentially fatal to the economy, the government and the federal reserve can then step in to curb the disaster. This doesn’t mean a recession will disappear, but the worst that can happen will be prevented. Jobs will be saved and the economy will still be productive and money will still circulate. The gold standard does not allow this. The only thing a gold standard provides is price stability. Meaning that as long as there’s a gold standard there will never be hyperinflation and the country’s currency will be stable.

Also, Ron Paul does not understand how today’s economy works. Our economy has changed very much since the 1840’s. Types of transactions, hedge funds, mutual funds , options trading and others that we have today were non existent during that time. These very transactions keep the money flowing in our economy, and are able to provide capital to businesses who use it to create wealth and make the economy grow. A gold standard would not favor this very complex economy.

Besides a little bit of inflation is good. Inflation between 1 and 2% makes people spend their paper instead of locking it up in a safe where it will actually lose value as time goes on.

John answers:

I agree, gold standard doesn’t work in today’s global economy. That said, is the name calling really necessary? It just makes you look like a fool.

Jenny asks…

Is delusional Ron Paul still in living in the 1840s ? This man doesn’t understand how today’s economy works?

Read this and learn something Paultards.

No country uses the gold standard anymore. If they did, we’d be all screwed we had a recession. A federal reserve exists for a reason. When there’s economic slowdown which can be potentially fatal to the economy, the government and the federal reserve can then step in to curb the disaster. This doesn’t mean a recession will disappear, but the worst that can happen will be prevented. Jobs will be saved and the economy will still be productive and money will still circulate. The gold standard does not allow this. The only thing a gold standard provides is price stability. Meaning that as long as there’s a gold standard there will never be hyperinflation and the country’s currency will be stable.

Also, Ron Paul does not understand how today’s economy works. Our economy has changed very much since the 1840’s. Types of transactions, hedge funds, mutual funds , options trading and others that we have today were non existent during that time. These very transactions keep the money flowing in our economy, and are able to provide capital to businesses who use it to create wealth and make the economy grow. A gold standard would not favor this very complex economy.

Besides a little bit of inflation is good. Inflation between 1 and 2% makes people spend their paper instead of locking it up in a safe where it will actually lose value as time goes on.

John answers:

These are people that believe that Keyenes was a socialist.

Most Ron Paul supporters live in a fantasy world where the free market is perfect and they have as much power are heads of big corporations.

Helen asks…

Put option confusion, please explain?

Ok, I’ve recently gotten into trading stock and stock options. I’ve been using the Paper Money(virtual money) Think or Swim platform and recently have been experimenting with stock options. From what I’ve seen, when I buy a call option and the stock goes up, I get a profit.

Now the confusing part is when I buy a Put Option. I predicted GOOG would go down, so I bought a put option.. I bought the put option strike price in the money at $625. the price of stock at the time was $610. now the price has dipped down to $609 and it says that I am losing money from this Put option.. I thought when I buy a put option, I want the stock to go down instead of up?? can someone clear this up for me?
hey guys, nvm.. the price dipped down to $608 and I made a $1,400 (virtual) profit. muahahaha!

John answers:

It isn’t a linear relationship, there is also the time value, also known as extrinsic value, which depends on the probability of where the price may be by the time the option expires. So when the stock drops by $1, that doesn’t mean the put option will rise by $1 as there is still the possibility that the price may go back up by the time the option expires. The time value disappears as the option expires, most of it disappears in the last month before expiration so it’s quite possible for a gain due to the stock price dropping to be offset by the loss from the time value diminishing as the expiration approaches. The time value also reduces, the further away from the strike price that the stock is at. That was what the Black Scholes equation did, it estimated a time value that was appropriate if the stock price was represented by a random walk ( more correctly by a log normal gaussian distribution ).

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