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。
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...
For people who stay motivated with quick wins, the debt snowball method can propel a successful payoff strategy. Maryalene LaPonsieJan. 17, 2025 Debt Snowball Method Offers Fresh Start If you're feeling the post-holiday pinch in your wallet, here are six ways to recover from overspending. ...
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) Draw...
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. ...
aThe process of pooling and tranching effectively creates securities whose payoff profiles resemble those of a digital call option on the market index.Intuitively, pooling allows for broad diversification of idiosyncratic default risks, such that – in the limit of a large diversified underlying portfoli...
However, this study suggests that affective factors can influence a debt payoff, showing that such a decision is taken to minimize displeasure even if it is not the optimal economic decision. The two central assumptions of the "double-entry" mental accounting theory are prospective accounting and...
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...