Class 12 Chapter 9 Introduction to Options Contracts

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Class 12 Chapter 9 Introduction to Options Contracts a.i.1. Options contracts b. Asymmetric contracts b.i. Buyers have rights b.ii. Sellers have obligations c. Standardized on the underlier d. Exchange traded e. Features of options e.i. Strike price e.ii. Option price e.ii.1. positive correlation with expiration horizon, and underlier volatility; to in the money e.ii.2. Option price = Intrinsic value + Time value e.iii. Expiration date e.iv. In the money means intrinsic value is positive—out of the money no intrinsic value f. Example: INTC Stock Intel Corporation (INTC) At 4:00PM ET: 14.91 0.18 (1.22%) Options View By Expiration: Feb 09 | Mar 09 | Apr 09 | Jul 09 | Jan 10 | Jan 11 Options Expiring Fri, Jul 17, 2009 Calls Strike Price Puts Symbol Last Change Bid Ask Volume Open Int Symbol Last Change Bid Ask Volume Open Int NQGA.X 9.15 0.00 9.80 10.10 1 19 5.00 NQSA.X 0.03 0.02 0.03 0.04 192 494 NQGI.X 4.10 0.00 6.05 6.15 12 12 9.00 NQSI.X 0.28 0.07 0.25 0.27 12 3,723 NQGP.X 4.60 0.00 5.15 5.30 1,225 1,403 10.00 NQSP.X 0.45 0.00 0.37 0.39 13 1,571 NQGL.X 4.05 0.00 4.30 4.45 10 147 11.00 NQSL.X 0.63 0.00 0.54 0.57 15 4,020 NQGO.X 3.50 0.00 3.55 3.65 18 1,271 12.00 NQSO.X 0.81 0.04 0.77 0.80 9 9,909 NQGM.X 2.97 0.17 2.88 2.92 24 4,948 13.00 NQSM.X
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