2 3 man and risk development of options markets s s s

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Unformatted text preview: ion to DerivativesCh. 2: 3 Man and Risk Development of Options Markets s s s s Early origins Put and Call Brokers and Dealers Association Chicago Board Options Exchange, 1973 Resurgence of over-the-counter market Chance/Brooks An Introduction to DerivativesCh. 2: 4 Man and Risk Call Options s s s Current example Objective of a call buyer – profit from appreciation Moneyness concepts x In-the-money x Out-of-the-money x At-the-money Chance/Brooks An Introduction to DerivativesCh. 2: 5 Man and Risk Put Options s s s Current example Objective of a put buyer – lock in stock price Moneyness concepts x In-the-money x Out-of-the-money x At-the-money Chance/Brooks An Introduction to DerivativesCh. 2: 6 Man and Risk Over-the-Counter Options Market s s s s s s Worldwide Credit risk Customized terms Private transactions Unregulated Options on stocks and stock indices, bonds, interest rates, Options commodities, swaps & currencies commodities, Chance/Brooks An Introduction to DerivativesCh. 2: 7 Man and Risk Organized Options Trading The concept of an options exchange s s s s s Listing Requirements Contract Size Exercise Prices Expiration Dates Position and Exercise Limits Chance/Brooks An Introduction to Der...
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This document was uploaded on 02/19/2014 for the course MBA finance at University of Texas.

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