This preview shows page 1. Sign up to view the full content.
Unformatted text preview: tion date: the date the option expires. All Rights Reserved Dr David P Echevarria 3 GENERAL TERMINOLOGY
F. Profit (Loss) Definitions: In- At- or Out-of-the-Money
1. In-the-Money Call: The stock price is greater than the
2. In-the-Money Put: The stock price is less than the exercise
3. At-the-Money Call or Put: The stock price is equal to the
4. Out-of the Money Call: The stock price is less than the
5. Out-of-the-Money Put: The stock price is greater than the exercise
price All Rights Reserved Dr David P Echevarria 4 ORGANIZED OPTIONS TRADING
A. Types of Options Exchanges
1. Registered exchanges; trading standardized contracts in a
a. CBOE is largest. PHLX, NYSE, AMEX, PSE also do options
trading. 2. Over-The-Counter; informal, institutional trading in
specially tailored contracts.
B. Listing Requ...
View Full Document
- Fall '09