Futures and OptionsThe following sections are included:INTRODUCTIONA Famous ExampleFuturesWARRANTSCommon Stock Subscription RightsExampleWarrants, Convertibles, and DilutionOptionsSUMMARYPROBLEMSREFERENCESdoi:10.1142/9789813224261_0008Edward E. WilliamsJohn A. DobelmanWorld Scientific Publishing Co. Pte. Ltd.
Understandthecontentsandfeatureofafuturescontract 1 3Understandthefunctionoffutures&options 4 Chapter9Futures&Options KeyTopics 1Futurescontract;（期货交易合同）2Margins;（保证金）3Futuresexchange;（期货交易所）4Options;（期权）5Mark-to-market.（逐日盯市）Textcontents Section9.1FuturestradingSection9.2...
(if any) that have already been incurred on the positions held by a firm.9.2.5 Financial FuturesExample 1: CSI 300 Index Futures Example 2: 5-year Treasury Bond Futures Section 9.3 Options9.3.1 Contract specifications9.3.2 TypesOption9.3.3 Option styles9.3.4 Trading9.3.1 Contract ...
You can trade in futures and options through the Bombay Stock Exchange (BSE) The considerable advantage of investing in futures and options is that you don’t have to spend money on the underlying asset. You only need to pay an initial margin to the stockbroker to trade. For example, ...
Futures and Options Aim • To introduce the basic concepts of a) futures and b) options. a) Futures Learning Objectives for futures • Understand the difference between forwards and futures. • Appreciate that the margining system that is possible with futures (but not forwards) protect...
1. Definition of Put and Call options 2. Put-Call parity 3. Long call pay-off at expiry. 4. Short call pay-off at expiry. 5. American Vs European options 6. How to value European options prior to expiry. 7. Sensitivity analysis. ...
Example of Options on Futures As an example of how these option contracts work, first consider an S&P 500 futures contract. The most popularly traded S&P 500 contract is called the E-mini S&P 500, and it allows a buyer to control an amount of cash worth 50 times the value of the S&P ...
Chapter 1-Fundamentals of Futures and Options Markets Introduction Derivatives 1 TheNatureofDerivatives Aderivativeisaninstrumentwhosevaluedependsonthevaluesofothermorebasicunderlyingvariables 2 ExamplesofDerivatives •FuturesContracts•ForwardContracts•Swaps•Options 3 WaysDerivativesareUsed ...
Options and futures are traded on the same market, except for the following differences: Margin: for futures trading both seller and buyer are charged margin (initial and variation), given it's obligation for both, but with options, holders usually pay their premiums up-front, and can not in...
A calendar spread is an options or futures strategy where an investor simultaneously enters long and short positions on the same underlying asset but with different delivery dates. In a typical calendar spread, you would buy a longer-term contract and go short with a nearer-term option with the...