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https://doi.org/10.1142/9789812833204_0009Cited by:0 (Source: Crossref)
Abstract:

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