Assignment_2_IB - Option s Gr oup M ember s Name 8 Ashlesh...

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Roll No. Name 8 Ashlesh Bal 21 Mamta Bansal (Ms.) 24 Niraj Kumar 26 Priti Mittal (Ms.) 27 Priyabrata 28 Pruthvi Reddy Gurram 29 Raja Chaitanya Vikram G 35 Saswati Das (Ms.) Group Members Option s
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An option contract gives its owner the right, but not the legal obligation, to conduct a transaction involving an underlying asset at a predetermined future date (the exercise date) and at a predetermined price (the exercise or strike price). An option gives the option buyer the right to decide whether or not the trade will eventually take place. There are four types of participants in options markets: buyers of calls, sellers of calls, buyers of puts, and sellers of puts. Buyers are often referred to as holders and sellers are also referred to as writers. The two types of options are calls and puts: A call gives the holder the right to buy an asset at a certain price within a specific period of time A put gives the holder the right to sell an asset at a certain price within a specific period of time.
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Intrinsic value An option’s intrinsic value is the amount by which the option is in-the-money.
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This note was uploaded on 05/30/2011 for the course ECON 101 taught by Professor Ke during the Spring '11 term at Lethbridge College.

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Assignment_2_IB - Option s Gr oup M ember s Name 8 Ashlesh...

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