Expiration date the date the option expires all

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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 In-the-Money exercise price exercise 2. In-the-Money Put: The stock price is less than the exercise In-the-Money price price 3. At-the-Money Call or Put: The stock price is equal to the At-the-Money exercise price exercise 4. Out-of the Money Call: The stock price is less than the Out-of exercise price exercise 5. Out-of-the-Money Put: The stock price is greater than the exercise price 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 Registered liquid market. a. a. CBOE is largest. PHLX, NYSE, AMEX, PSE also do options CBOE trading. 2. Over-The-Counter; informal, institutional trading in 2. Over-The-Counter; specially tailored contracts. B. B. Listing Requ...
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