Bonds Definition of options Options are contracts granting the right to the option holder buyer to sell or buy an underlying security at an agreed-upon price strike price on a specific future date. In other words: options give the option to the buyer to sell or buy an underlying. In the same time, opció példa generate an obligation to the seller of the option.
Strategy: Basic strategy, Income strategy Opening the position Sell a Call option with a strike price higher than the current market price of the underlying security. Write a Call option with a strike price close to the current price of the underlying security ATM Call.
There are two types of options: call buy and put sell. A call option offers the buyer the right, but not the obligation to buy.
Short Call Option
On the contrary, a put option offers the buyer the right but not the obligation to sell. Another way to categorise options is the time when the option can be exercised. Opció példa are two main styles: European and American. European-style options can be exercised opció példa at maturity, which is a specific future date. American-style options can be exercised any time between the time of purchase and maturity date.
The underlying security or asset is the instrument, which the option grants the right to sell or buy.
The maturity or expiration date is the date when or until the option can be exercised. The strike webes lehetőség inter rao of opció opció példa option is the agreed-upon price of the underlying. The actual market price of the underlying at maturity does not matter. Opció példa can be categorised based on their market as well. On the stock exchange, option contracts are standardised in terms of underlying, maturity, and strike price.
Options with underlying of stock exchange indexes are the most well known. The value of an option at expiry equals to the amount exchanged if the option is exercised. Opció példa the option does not worth to exercise, its value will be zero.
Tanulj az opciókról 30 napig ingyen!
Therefore, the value of a buy option is either the difference between the price of the underlying and the strike price or zero the difference between the two prices is negative. On the contrary, the value of a sell option is either the difference between the strike price and the price of the underlying or zero the difference between the two prices is negative.
Before maturity, the value of the option depends on what type of option it is. However, analytic approach cannot be used for American options, valuation is only possible with numeric methods.
The most opció példa numeric method is the Binomial model. Premium of an option The value of an option can be divided into two factors: extrinsic time value and intrinsic value.
Intrinsic value is the amount an opció példa would worth if opció példa was exercised today price of underlying - strike price. Time value makes up the remaining part: value of the option - time value.
At maturity, the time value is zero and the value of the option equals to the intrinsic value. In the Money ITM options have intrinsic values. In case of a Call option it means that the price of opció példa underlying is higher than the strike price.
For Put options it is the opposite: the price of the underlying is lower than the strike price. At the Money ATM is when the price of the underlying equals to the strike price.
Opció belső és időértéke, put-call paritás
Out of the Money OTM options have no intrinsic values: for Call options the strike opció példa is higher than the price of the underlying and for Put options it is the opposite: the strike opció példa is lower than the price of the underlying. The Black-Scholes option pricing model relies on this value as well.
The calculation requires the following variables: spot price, exercise price strike pricerisk-free interest rate, and time to expiry. This is directly observable from the price of the options.