Options Basics What is an Option? Long/Short Call Option Put Option

Slides:



Advertisements
Similar presentations
Options Markets: Introduction Faculty of Economics & Business The University of Sydney Shino Takayama.
Advertisements

Options and Options Markets Supplemental Chapter 2.
What is an Option? Definitions: An option is an agreement between two parties that gives the purchaser of the option the right, but not the obligation,
Options An option is a financial contract in which one party (the buyer) MAY buy (for a Call option) or sell (for a Put option) a specified quantity of.
1 Finance instruments Currency Vanilla options Introduction Currency Barrier options.
Economics 434 – Financial Market Theory Thursday, August 25, 2009 Thursday, August 24,Thursday, September 21, Tues, Nov 27, 2012 Economics 434 Theory of.
Intermediate Investments F3031 Derivatives You and your bookie! A simple example of a derivative Derivatives Gone Wild! –Barings Bank –Metallgesellschaft.
Academy 5 Basic Option Trading Get connected to B&R 1.
A Basic Options Review. Options Right to Buy/Sell a specified asset at a known price on or before a specified date. Right to Buy/Sell a specified asset.
1 OPTIONS Call Option Put Option Option premium Exercise (striking) price Expiration date In, out-of, at-the-money options American vs European Options.
Copyright © 2002 Pearson Education, Inc. Slide 9-1.
© K. Cuthbertson and D. Nitzsche Figures for Chapter 7 OPTIONS MARKETS (Financial Engineering : Derivatives and Risk Management)
AIM How can we use derivative investments to enhance our portfolio? DO NOW What are stock options? OPTIONS AND FUTURES.
6. Currency options International Financial Services 2 Karel Bruna.
1 Chapter 9 Financial Options and Applications in Corporate Finance.
Advanced Option Strategies Derivatives and Risk Management BY SUMAT SINGHAL.
Bull Put Spread Strategy Name: BULL PUT SPREAD Direction: Bullish Max. Risk: Capped Type: Income Volatility: N/A Max. Reward: Capped Proficiency: Intermediate.
Lecture 16. Option Value Components of the Option Price 1 - Underlying stock price 2 - Striking or Exercise price 3 - Volatility of the stock returns.
CREDIT SPREADS ON STOCK INDEXES. WHY SELL CREDIT SPREADS? Non Correlation to Traditional Investments Limited Risk Ability to take advantage of time.
AGEC 420, Lec 371 Agec 420 – April 24 Review Quiz #8 Markets Options Reminder: Assignments due # 7 (not 10): Data download and Chart, Fri. April 26 # 8:
“A derivative is a financial instrument that is derived from some other asset, index, event, value or condition (known as the underlying asset)”
Lecture 15.  Option - Gives the holder the right to buy or sell a security at a specified price during a specified period of time.  Call Option -
A Short Primer of Options. Options Options give the holders a right to buy or sell the underlying asset by a certain date for a certain price. Four key.
A different kind of Tree Using trees to help price options. Using trees to help price options. Some of the ideas behind Black-Scholes. Some of the ideas.
Bull Call Spread Strategy Name: BULL CALL SPREAD Direction: Bullish Max. Risk: Capped Type: Capital Gain Volatility: N/A Max. Reward: Capped Proficiency:
OPTIONS Stock price at end of holding period Profit (in dollars) BUY STOCK BUY STOCK.
Aditya Birla Money Limited Copyright Aditya Birla Nuvo Limited 2008 Options 1 “Options” is essentially an  Insurance Type of a Standard Contract  Entered.
Lecture 2.  Option - Gives the holder the right to buy or sell a security at a specified price during a specified period of time.  Call Option - The.
FINANCIAL DERIVATIVES PRESENTED TO: SIR ILYAS RANA PRESENTED BY: TAQDEES TAHIR.
Covered Put Strategy Name: COVERED PUT Direction: Bearish Max. Risk: Un Capped Type: Income Volatility: N/A Max. Reward: Capped Proficiency: Advanced.
FNDC December 06 Mark Fielding-Pritchard mefielding.com1.
DEVRY FIN 516 Week 3 Homework Check this A+ tutorial guideline at For more classes visit.
Understanding Options
Put option Example Right to sell at a strike price
Principles of Finance with Excel, 2nd edition Instructor materials
Financial Engineering
Agricultural Commodity Marketing and Risk Management
Options Greeks: The Theta
Tactics II – Volatility & Time Iron Condors
Options Markets: Introduction
Agricultural Commodity Marketing and Risk Management
Options Chapter 19 Charles P. Jones, Investments: Analysis and Management, Eleventh Edition, John Wiley & Sons 17-1.
DERIVATIVES: OPTIONS Reference: John C. Hull, Options, Futures and Other Derivatives, Prentice Hall.
Covered Calls and Cash-secured Puts
Corporate Finance, Concise Understanding Options
HW No. 1. Due WED FEB 10 page 1 of 2 The table below describes options prices for a stock MMM on AUG The strike prices Are in the leftmost.
Example of a call option
P(T1, T2) - F(t, T1: T2) P(T1, T2) F(t, T1: T2) F(t, T1: T2) Figure 3.1: Payoff Diagram for a Forward Contract with Delivery.
FIN 567 Competitive Success-- snaptutorial.com
FIN 351 Innovative Education-- snaptutorial.com
FIN 567 Education for Service-- snaptutorial.com
FIN 567 Teaching Effectively-- snaptutorial.com
Options on Futures Separate market Option on the futures contract
Commodity Marketing Strategies Utilizing Options
Options Defined This class is a production of Safe Option Strategies © and the content is protected by copyright. Any reproduction or redistribution of.
Agricultural Marketing
Adjusting Straddles and Strangles
2. The stock price will be down by two thirds to: 9.17/share.
2. Retractable bonds allow the investor to redeem the bond at par or allow the bond to remain outstanding until maturity. a. These bonds are called puttable.
Agricultural Marketing
Agricultural Marketing
HW No. 1. Due TUE JAN 26 page 1 of 2 The table below describes options prices for a stock MMM on AUG The strike prices, denoted by K, are.
A. Caggia, M. Armanini Financial Investments & Pricing 2015/2016
Agricultural Marketing
Agricultural Marketing
Agricultural Marketing
Agricultural Marketing
Agricultural Marketing
Agricultural Marketing
Agricultural Marketing
Presentation transcript:

Options Basics What is an Option? Long/Short Call Option Put Option Option Chain

Options Slightly more Advanced than Basics Premium Strike Price Expiration Date Exercise Open Interest Time Decay

Types of Options In the Money Call In the Money Put Out of the Money Call Out of the Money Put Risk?

Making Money with Options Long Call In v Out Tasty Gainz

Making Money with Options Short Call In v Out Why would you do such a thing?

Making Money with Options Long Put In v Out Tasty Gainz

Making Money with Options Short Put In v Out Why? Just. . . Why?

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com. Inc. All rights reserved.