Ch11HullFundamentals7thEd - Trading Strategies Involving...

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Fundamentals of Futures and Options Markets, 7th Ed, Ch 11, Copyright © John C. Hull 2010 Trading Strategies Involving Options Chapter 11 1
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Fundamentals of Futures and Options Markets, 7th Ed, Ch 11, Copyright © John C. Hull 2010 Three Alternative Strategies Take a position in the option and the underlying Take a position in 2 or more options of the same type (A spread) Combination: Take a position in a mixture of calls & puts (A combination) 2
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Fundamentals of Futures and Options Markets, 7th Ed, Ch 11, Copyright © John C. Hull 2010 Positions in an Option & the Underlying (Figure 11.1, page 250) Profit S T K Profit S T K Profit S T K Profit S T K (a) (b ) (c ) (d ) 3
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Fundamentals of Futures and Options Markets, 7th Ed, Ch 11, Copyright © John C. Hull 2010 Bull Spread Using Calls (Figure 11.2, page 251) K 1 K 2 Profit S T 4
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Fundamentals of Futures and Options Markets, 7th Ed, Ch 11, Copyright © John C. Hull 2010 Bull Spread Using Puts Figure 11.3, page 253 K 1 K 2 Profit S T 5
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Fundamentals of Futures and Options Markets, 7th Ed, Ch 11, Copyright © John C. Hull 2010 Bear Spread Using Puts Figure 11.4, page 253 K 1 K 2 Profit S T 6
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Fundamentals of Futures and Options Markets, 7th Ed, Ch 11, Copyright © John C. Hull 2010 Bear Spread Using Calls Figure 11.5, page 254 K 1 K 2 Profit S T 7
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Fundamentals of Futures and Options Markets, 7th Ed, Ch 11, Copyright © John C. Hull
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Ch11HullFundamentals7thEd - Trading Strategies Involving...

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