Options and Option Strategies
The following sections are included:
Introduction
The Option Market and Related Definitions
What is an Option?
Types of Options and Their Characteristics
Relationships Between the Option Price and the Underlying Asset Price
Additional Definitions and Distinguishing Features
Types of Underlying Asset
Institutional Characteristics
Put-Call Parity
European Options
American Options
Future Options
Market Application
Risk-Return Characteristics of Options
Long Call
Short Call
Long Put
Short Put
Long Straddle
Short Straddle
Long Vertical (Bull) Spread
Short Vertical (Bear) Spread
Calendar (Time) Spreads
Examples of Alternative Option Strategies
Protective Put
Covered Call
Collar
Summary
Questions and Problems
References for Chapter 9