future trading strategy

Jun 28th, 2015
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Academy of Art University
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Because the video production field is enjoying such rapid growth, keeping up with its technological advancements is a real challenge. The equipment used in video production is becoming more sophisticated, practical, and accessible every day, and more and more people are getting involved with video projects of all kinds.

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Option Valuation ModelsSection 1:Put Call Parity3What is Put Call Parity ?Put Call ParityRelationship betweenThe price of the European call option (C)the price of the European put option (P)of the same strike price (K)At Maturity Date (T)Mathematical EquationC-P = Spot Price (S)- Present Value of Strike Price (PV of K)3Logic behind Put Call ParityFor a given underlying,Consider a portfolio of Long Future, Long Put & Short Call (only conditionbeing Call & Put must of the same strike price)Such a portfolio will assure the holder pay in equal to the strike priceirrespective of the level of expiry.e.g. Investor holds Nifty Future @ 5200, Nifty Put of the strike price 5200& has sold call of Nifty 5200 strike. (Assured Pay in equal to 5200)Nifty onExpiryCase 1 (Expiry=CMP)Case 2 (Expiry >CMP)Case 3 (Expiry CMP)Case 3 (Expiry

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