option_intro - Brief Introduction Options Markets Option...

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Brief Introduction Options Markets
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.       Option Terminology Buy - Long Sell - Short Call: the right to buy Put: the right to sell Key Elements Exercise or Strike Price Premium or Price Maturity or Expiration
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.       Market and Exercise Price Relationships In the Money - exercise of the option would be profitable Call: market price>exercise price Put: exercise price>market price Out of the Money - exercise of the option would not be profitable Call: market price<exercise price Put: exercise price<market price At the Money - exercise price and asset price are equal
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.       American vs European Options American - the option can be exercised at any time before expiration or maturity European - the option can only be exercised on the expiration or maturity date
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.       Different Types of Options Stock Options Index Options Futures Options Foreign Currency Options Interest Rate Options
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.       Payoffs and Profits on Options at
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This note was uploaded on 05/10/2008 for the course FIN 367 taught by Professor Han during the Spring '08 term at University of Texas at Austin.

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option_intro - Brief Introduction Options Markets Option...

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