买call option是要付钱的，sell put 是收钱，如果其他都一样，理论上在maturity的时候，payoff两个是一...
因为covered call是个portfolio，sell put只是一个单一的positon，两者的成本显著不同。
000 (($100 – $95) x 1000) as a payoff on the option. To calculatethe net profitfor the position, we need to subtract the cost of options (the optionpremiumpaid to the seller) of $3,100 ($3.1 x 1000). Thus, the net profit on the option position is $1,900 ($5,000 – $3...
关于期权的PAYOFFA call option has an exercise price of $150. At the final exercise date, the stock price could be either $100 or $200. Which investment would combine to give the same payoff as the stock? Lend PV of $100 and buy two calls Le
What is the option to abandon? The option to expand? Explain why we tend to underestimate NPV, when we ignore these options. With aid of payoff diagrams, explain carefully the difference between selling a call option and buying a put...
You write a call option with X = 50 and buy a call with X = 60. The options are on the same stock and have the same expiration date. One of the calls sells for $3; the other sells for $9. a) Dra...
Even though the payoff diagram shows an unlimited loss potential, you must remember that many investors implementing this type of strategy have bought the stock long ago and hence the call option's strike price may be a long way from the purchase price of the stock. For example, say you bo...
Buy a Put Option when you are bearish about the underlying prospects. In other words, a Put option buyer is profitable only when the underlying declines in value. The intrinsic value calculation of a Put option is slightly different from the intrinsic value calculation of a call option. ...
Okay, now let’s talk about how much premium you want to invest and what payoff potential you want to see if: 1. The market moves exactly as you expected, 2. Does not move at all, or 3. Moves the opposite direction of what you expected ...
The distinction between the payoffs for a put and a call is important to remember. When dealing with longcall options, profits are limitless because a stock can go up in value forever (in theory). However, a payoff for a put is not the same because a stock can only lose 100% of its...