Ch20HullFundamentals6thEd

Ch20HullFundamentals6thEd - Exotic Options and Other...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 20.1 Exotic Options and Other Nonstandard Products Chapter 20
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 20.2 Types of Exotic Options Packages Nonstandard American options Forward start options Compound options Chooser options Barrier options Binary options
Background image of page 2
Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 20.3 Types of Exotic Options continued Lookback options Shout options Asian options Options to exchange one asset for another Options involving several assets
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 20.4 Packages (page 444) Portfolios of standard options Examples from Chapter 10: bull spreads, bear spreads, straddles, etc Example from Chapter 13: Range forward contracts Packages are often structured to have zero cost
Background image of page 4
Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 20.5 Nonstandard American Options (page 444) Exercisable only on specific dates (Bermudans) Early exercise allowed during only part of life (e.g. there may be an initial “lock out” period) Strike price changes over the life
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 20.6 Forward Start Options (page 444) Option starts at a future time, T Most common in employee stock option plans Often structured so that strike price equals asset price at time T
Background image of page 6
Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 20.7 Compound Option (page 444) Option to buy or sell an option Call on call Put on call Call on put Put on put Very sensitive to volatility
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 26

Ch20HullFundamentals6thEd - Exotic Options and Other...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online