TAILIEUCHUNG - Essentials of Investments: Chapter 15 - Options Markets

Essentials of Investments: Chapter 15 - Options Markets Option Terminology, Market and Exercise Price Relationships, American vs European Options, Different Types of Options, Payoffs and Profits on Options at Expiration - Calls. | 1 Bodie • Kane • Marcus Essentials of Investments Fourth Edition Chapter 15 Options Markets Irwin / McGraw-Hill © 2001 The McGraw-Hill Companies, Inc. All rights reserved. 2 Bodie • Kane • Marcus Essentials of Investments Fourth Edition Option Terminology • • • • • Buy - Long Sell - Short Call Put Key Elements – Exercise or Strike Price – Premium or Price – Maturity or Expiration Irwin / McGraw-Hill © 2001 The McGraw-Hill Companies, Inc. All rights reserved. 3 Bodie • Kane • Marcus Essentials of Investments Fourth Edition Market and Exercise Price Relationships In the Money - exercise of the option would be profitable Call: market price>exercise price Put: exercise price>market price Out of the Money - exercise of the option would not be profitable Call: market price>exercise price Put: exercise price>market price At the Money - exercise price and asset price are equal Irwin / McGraw-Hill © 2001 The McGraw-Hill Companies, Inc. All rights reserved. 4 Bodie • Kane • Marcus Essentials of Investments Fourth Edition American vs European Options American - the option can be exercised at any time before expiration or maturity European - the option can only be exercised on the expiration or maturity date Irwin / McGraw-Hill © 2001 The McGraw-Hill Companies, Inc. All rights reserved. 5 Bodie • Kane • Marcus Essentials of Investments Fourth Edition Different Types of Options • • • • • Stock Options Index Options Futures Options Foreign Currency Options Interest Rate Options Irwin / McGraw-Hill © 2001 The McGraw-Hill Companies, Inc. All rights .

• Kinh tế học
• Essentials of Investments
• Options Markets
• Option Terminology
• Exercise Price Relationships
• European Options
• Different Types of Options
• Ebook Essentials of investments
• Investment companies
• Debt securities
• Portfolio theory
• Securities markets
• Capital asset pricing
• Derivative markets
• Active investment management
• Equity valuation
• Financial statement analysis
• Financial Assets
• The Investment Process
• Major Classes of Financial Assets
• Key Trends
• Global Markets
• Industry analysis
• Option valuation
• Futures markets
• Asset classes
• Financial instruments
• Other investment companies
• Behavioral finance
• Technical analysis
• Mutual funds
• International investing
• Performance evaluation
• Financial Markets
• Money Market Instrument Yields
• Bank Discount Rate
• Bond Equivalent Yield
• Securities market
• Secondary Security Sales
• Investment Banking Arrangements
• Public Offerings
• Private Placements
• Net Asset Value
• Types of Investment Companies
• Rates of Return
• Returns Using Arithmetic
• Geometric Averaging
• Dollar Weighted Returns
• Dollar Weighted Average Using Text
• Efficient Diversification
• Correlation Coefficients
• Three Security Portfolio
• Minimum Variance Combination
• Extending Concepts to All Securities
• Arbitrage Pricing Theory
• Resulting Equilibrium Conditions
• Capital Market Line
• Market Risk Premium
• The Efficient Market Hypothesis
• Versions of the EMH
• Types of Stock Analysis
• Resource Allocation
• How Tests Are Structured
• Behavioral Critiqu
• Share Price
• Moving Averages
• Bond Prices
• Bond Characteristics
• Corporate Bonds
• Preferred Stock
• Innovation in the Bond Market
• Bond Pricing Relationships
• Rules for Duration
• Callable Bonds
• Mortgage Backed Securities
• Passive Managemen
• Fundamental Analysis
• The Global Econom
• The Domestic Macroeconom
• The Domestic Macroeconomy
• Models of Equity Valuation
• Valuation by Comparables
• Limitations of Book Value
• Financial Statements
• Profitability Measures
• Financial Leverage
• Factors influencing option values
• BlacScholes option valuation
• Using the BlacScholes formula
• Binomial Option Pricing
• Risk Management
• Basics of Futures Contracts
• Existing Contracts
• Trading Mechanics