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Published byWilfrid Wilkins Modified over 9 years ago
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The options Created by: Magdolenová Jana Ondrovičová Matilda
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Content: History Option Option contracts Option strategies
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History 1773 – Barnard´s law – option contracts are out of law 1860 – deletion of this law 1973 – the boom of option contracts, the creation of Chicago Board Exchange 1975 – the creation of America Stock Exchange and Philadelphia and next year also the boom of option contracts in Toronto, Montreal and Vancouver 1977 – the deletion of previous restrictions 1978 – the first option contracts and Amsterdam market 1981 – the creation of option contracts and obligation in Amsterdam market 1982 – the creation of option contracts and obligation in Montreal and London, the beginning of trading with option for a foreign currency 90 years – the beginning of trading with option and derivatives
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What is the option?
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Option terminology Call option Put option Option premium
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Option contract - is a written agreement creating the rights and obligations for both sides. One side there is a seller who wants to buy the instruments. On the other side is a buyer who wants to realize an inverse operation, it means, sell these instruments. They negotiate the price, the value of delivery and time of filling.
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European option American option Exotic option Types of option contracts
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Option strategy 1.Option strategy with a same type of options bull spread bear spread butterfly spread condor spread ratio spread ratio back spread calendar spread diagonal spread
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Option strategy 2. Option strategy based on the combination of both types of options straddle strangle strap strip
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Thank you for your attention!
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