Ch10 - Trading Strategies Involving Options Chapter 10...

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Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 10.1 Trading Strategies Involving Options Chapter 10
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Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 10.2 Three Alternative Strategies z Take a position in the option and the underlying z Take a position in 2 or more options of the same type (A spread) z Combination: Take a position in a mixture of calls & puts (A combination)
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Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 10.3 Positions in an Option & the Underlying (Figure 10.1, page 230) Profit S T K Profit S T K Profit S T K Profit S T K (a) (b) (c) (d)
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Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 10.4 Bull Spread Using Calls (Figure 10.2, page 231) K 1 K 2 Profit S T
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Fundamentals of Futures and Options Markets , 6 th Edition, Copyright © John C. Hull 2007 10.5 Bull Spread Using Puts Figure 10.3, page 233 K 1 K 2 Profit S T
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This note was uploaded on 05/10/2011 for the course MGT D72 taught by Professor Chau during the Spring '11 term at University of Toronto- Toronto.

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Ch10 - Trading Strategies Involving Options Chapter 10...

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