Jun 28th, 2015
Studypool Tutor
A. T. Still University
Price: \$25 USD

Tutor description

Outlining your options The advent of trading in options in India opens up exciting investment opportunities with a new vocabulary and understanding. Should you straddle or strangle? Or perhaps create your own combination? By taking up one option strategy every week, we hope PUT & CALL will clarify such questions and more. We will correlate theory to real-world examples from the Indian markets, complete with an Excel worksheet to instantly calculate payoffs. For starters, heres how to straddle the new world of options.

Word Count: 352
Showing Page: 1/8
Currency Option ContractsTerminologyOptions Contract: An option is a contract that gives the holder theright (Not the Obligation) to Buy or sell currency in the future for apre specified price.Option writer: The option writer is the person or institution that sellsthe option.Option Premium: Is the option price, it is what the buyer pays,upfront, for the right to Buy/Sell currency in the future at a set price.Maturity Date: also call the Expiration Date or Expiry. This is thedate when the option expires.Exercise: If the option holder decides to execute the option and buyor sell currency at the contract price, then the option is said to beexercised.Early Exercise: Refers to an American option being exercisedbefore the maturity date.TerminologyStrike Price: The FX rate specified in the contract that the optionholder can buy or sell currency at. Option Types:1. Call Option: Gives the holder the right to BUY the specifiedcurrency at the strike price on or before the maturity date.2. Put Option: Gives the option holder the right to sell thespecified currency at the strike price, on or before the maturitydate3. European Option: Gives the option holder the right to buy/sellthe currency at but not before the maturity date.4. American Option: Gives the option holder the right to buy/sellcurrency any time before or on the maturity date.Types of options GraphicallyAmerican CallOptionsAmericanOptionsAmerican PutOp

## Review from student

Studypool Student
" Excellent work as usual "

1822 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors