Tut 10 - Derivatives Markets 2

Tut 10 - Derivatives Markets 2 - BANK1005 Derivatives and...

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BANK1005 Derivatives and Securities Markets Page 1 of 4 Tutorial 10 (Week 13) – Derivatives Markets 2 (Options Markets) © HB, October 2007 Preparation for This Tutorial You should complete your study for this tutorial by using the relevant lecture notes, textbook and other resources. Have a good understanding of the key words used in this tutorial. In particular, for this tutorial you should: s Know the key characteristics of call options and put options and understand the information about these characteristics. What do the terms mean? s You should know the meaning of the key terms, especially the ones used in these tutorial activities. Activity 1 Basics of a Call Option We first consider the information relating to a call option contract. Here is some information taken from The Australian Financial Review from its Market Wrap, Derivatives – Share Options section: Call Option Computershare Ltd Last Sale Price $9.66 Series Exercise Last Price Sale Oct 07 9.75 0.15 Oct 07 10.50 0.03 Oct 07 11.00 0.19 Nov 07 19.00 0.64 Nov 07 20.50 0.13 Dec 07 19.00 0.82 Dec 07 19.50 0.53 Jun 08 19.00 1.36 Jun 08 22.00 0.42 Source: The Australian Financial Review , 10 October 2007, page 45. What are the key characteristics of a call option?
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This note was uploaded on 10/19/2011 for the course BANK 1005 taught by Professor Hb during the Three '09 term at South Australia.

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Tut 10 - Derivatives Markets 2 - BANK1005 Derivatives and...

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