The $3 profit from the put would partially offset the $15 loss on the long position in the stock and would limit the loss to $12 per share. Stock Price Was at $110 at Expiry If the stock was $110 at expiry, the option wouldn't be exercised and would expire worthless. The r...
• If S < X, the call is said to be out of the money and will expire worthless. • A call with S = X is said to be at the money (or trading at par). © 2005 Pearson Education Canada Inc. 13-7 Buying and Writing Puts A second type of option contract is the put option...
DerivativeSecurityInducedPriceManipulationMichaelGallmeyerGraduateSchoolofIndustrialAdministrationCarnegieMellonUniversityPittsburgh,PA15213-3890Tel...
论文--大学论文 文档标签: 货币金融学-第十三章 系统标签: 第十三premiumpearsonoptionprice货币 Chapter 13 Financial Derivatives *© 2005 Pearson Education Canada Inc. Hedging Hedge: engage in a financial transaction that reduces or eliminates risk Basic hedging principle: Hedging risk involves engaging ...