Unformatted text preview: at bid, sell at ask to lock
in the spread.
3. Floor Broker: executes trades for public traders.
4. Order Book Official: Exchange official who oversees
execution of limit orders entered into the computer.
5. AMEX, PHLX: Spets, Registered Option Traders
All Rights Reserved Dr David P Echevarria 7 ORGANIZED OPTIONS TRADING
E. Types of Orders placed on Options Exchanges
G. Market orders
All or None Offsetting Orders: closing out a position
Open Interest: number of option contracts Opened on a
Exercising an Option; making or taking delivery at the
request of the holder All Rights Reserved Dr David P Echevarria 8 OPTIONS CLEARING
C. D. E. Guarantees writer performance and as such
is an important intermediary
Handles the assignment on exercises
All firms trading or brokering in options have
accounts with OCC
Sets capital requirements for members of the
Hold funds deposited for margin
requirements All Rights Reserved Dr David P Echevarria 9 TYPES OF OPTIONS
A. Stock Options; 2009 > 1500 different issues (CBOE...
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- Fall '09
- Options, Dr David P Echevarria