'Put call parity' presentation slideshows

Properties of Stock Option Prices Chapter 9

Properties of Stock Option Prices Chapter 9.

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Chapter 11

Chapter 11. Put and Call Options. A call option is the right to buy an underlying security at an exercise (strike) price during a stated time interval. C = Market value of the call option. P = Market value of the underlying asset. E = Exercise price (strike price). Call Options. 0.

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Lecture 10

Lecture 10. Financial Option Berk , De Marzo Chapter 20 and 21. Basic Concepts. Financial Option : A contract that gives its owner the right (but not the obligation) to purchase or sell an asset at a fixed price as some future date

569 views • 44 slides

Options

Options. Option Basics Option strategies Put-call parity Binomial option pricing Black-Scholes Model. 1. Option Basics: Terminologies. Buy - Long Sell - Short Call Put Key Elements Exercise or Strike Price Premium or Price Maturity or Expiration.

718 views • 41 slides

Options

Options. Option Basics Option strategies Put-call parity Binomial option pricing Black-Scholes Model. 1. Option Basics: Terminologies. Buy - Long Sell - Short Call Put Key Elements Exercise or Strike Price Premium or Price Maturity or Expiration.

715 views • 40 slides

Financial Engineering

Financial Engineering. Zvi Wiener mswiener@mscc.huji.ac.il 02-588-3049. Financial Engineering. Zvi Wiener Head of Finance Department The Hebrew University of Jerusalem 02-588-3049, mswiener@mscc.huji.ac.il. Alon Raviv ??? rmidbary@ovedgubi.com. Textbook.

499 views • 38 slides

CHAPTER 20

CHAPTER 20. Options Markets: Introduction. Buy - Long Sell - Short Call Put Key Elements Exercise or Strike Price Premium or Price Maturity or Expiration. Option Terminology. In the Money - exercise of the option would be profitable Call: market price>exercise price

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Important issues

Important issues. 723g28. The Term Structure of Interest Rates. The term structure is the set of interest rates on the same risk instrument for various time to maturity. The longer the time to maturity of a bond, the higher the expected return of the bond in normal time. (YTM)

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Important issues

Important issues. 723g28. The Term Structure of Interest Rates. The term structure is the set of interest rates on the same risk instrument for various time to maturity. The longer the time to maturity of a bond, the higher the expected return of the bond in normal time. (YTM)

452 views • 37 slides

Understanding Returns to Short Selling Using Option-Implied Stock Borrowing Fees

Understanding Returns to Short Selling Using Option-Implied Stock Borrowing Fees. Dmitriy Muravyev * , Neil D. Pearson # , and Joshua M. Pollet #. * Boston College # University of Illinois at Urbana-Champaign. March, 2019. Puzzle 1: Returns to shorting.

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Chapter 20 Financial Options

Chapter 20 Financial Options. 20.2 Option Payoffs at Expiration. Long Position in an Option Contract The value of a call option at expiration is

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The Black-Scholes Model Chapter 12

The Black-Scholes Model Chapter 12. Valuation. 1. Calculate the expected payoff from the option 2. Discount at the risk-free rate. Probability distribution. S T. CF=S T -K. K. K. S t. CF=0. t. T. time. Pricing an European Call The Black&Scholes model

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Exam FM/2 Review Intro to derivatives & options

Exam FM/2 Review Intro to derivatives & options. Basic derivatives. Derivatives are products with value derived from underlying assets Ask price- Market maker asks for this price, so you can buy here Bid price- Market maker bids this price, so you can sell here

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A Guide for Pricing Equity Option

Equity options, which are the most common type of equity derivatives, give an investor the right but not the obligation to buy a call or sell a put at a set strike price prior to the contract’s expiry date. Equity options or stock options provide investors a way to hedge risk or speculate. Also option trading can limit an investor’s risk and leverage investing potential. This presentation gives an introduction to equity option product and valuation. You can find more details at http://www.finpricing.com/lib/EqOption.html

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Equity Option Introduction and Valuation

Equity Option Introduction and Valuation. John Smith FinPricing. Equity Option. Summary Equity Option Introduction The Use of Equity Options Equity Option Payoffs Valuation Practical Guide A Real World Example. Equity Option. Equity Option Introduction

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