Professional Documents
Culture Documents
Options
Options
Call Option;
1)
Call Option لو انا اشتريت الـBuyer هنا حالة
Gives the option purchaser (buyer) the right but not the obligation to
buy a security at prespecified price (> )سعر ثابت اتفقوا علي وقت توقيع العقد
Strike Price (Exercise Price)
Purchaser (buyer) of the Call Option must pay the writer (seller) a call
premium (#) (up-front fee paid immediately)
Call Option
S > X
(Underlying Price) Greater (Strike Price) In the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S < X
(Underlying Price) Less (Strike Price) Out the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S = X
(Underlying Price) Equal (Strike Price) At the
(Stock Price) to (Exercise Price) money
(Market Price) (Agreed Price)
1) In the money:
The buyer exercise the option and profit,
How to calculate profit?
S – X - = Profit$
Call Option
S > X
(Underlying Price) Greater (Strike Price) Out the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S < X
(Underlying Price) Less (Strike Price) In the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S = X
(Underlying Price) Equal (Strike Price) At the
(Stock Price) to (Exercise Price) money
(Market Price) (Agreed Price)
1)
Put Option لو انا اشتريت الـBuyer هنا حالة
Gives the option purchaser (buyer) the right but not the
obligation to sell a security at prespecified price ( سعر
> )ثابت اتفقوا علي وقت توقيع العقدStrike Price (Exercise Price)
Purchaser (buyer) of the Put Option must pay the writer
(seller) a put premium (#) (up-front fee paid
immediately)
Put Option
S > X
(Underlying Price) Greater (Strike Price) Out the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S < X
(Underlying Price) Less (Strike Price) In the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S = X
(Underlying Price) Equal (Strike Price) At the
(Stock Price) to (Exercise Price) money
(Market Price) (Agreed Price)
1) In the money:
The buyer will exercise the option, and make profit,
-S-#+X= Profit$
The buyer will not exercise the option, so the loss is limited to
the Put Premium (#)
2)
Put Option لو انا ببيع الـWriter (seller) هنا حالة
Call Option
S > X
(Underlying Price) Greater (Strike Price) In the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S < X
(Underlying Price) Less (Strike Price) Out the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S = X
(Underlying Price) Equal (Strike Price) At the
(Stock Price) to (Exercise Price) money
(Market Price) (Agreed Price)