首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Once you own an option, there are three methods that can be used to make a profit or avoid loss : exercise it, offset it with an
Once you own an option, there are three methods that can be used to make a profit or avoid loss : exercise it, offset it with an
admin
2012-01-26
26
问题
Once you own an option, there are three methods that can be used to make a profit or avoid loss : exercise it, offset it with another option, or let it expire worthless. By exercising an option you have purchased, you are choosing to take delivery of (call) or to sell (put) the underlying asset at the option’s strike price. Only option buyers have the choice to exercise an option. Option sellers, on the other hand, may experience having an option assigned to an option holder and subsequently exercised.
Offsetting is a method of reversing the original transaction to exit the trade. If you bought a call, you have to sell the call with the same strike price and expiration. If you sold a call, you have to buy a call with the same strike price and expiration. If you bought a put, you have to sell a put with the same strike price and expiration. If you sold a put you have to buy a put with the same strike price and expiration. If you do not offset your position, then you have not officially exited the trade.
If an option has not been offset or exercised by expiration, the option expires worthless. If you originally sold an option, then you want it to expire worthless because then you get to keep the credit you received from the option premium. Since an option seller wants an option to expire worthless, the passage of time is an option seller’s friend and an option buyer’s enemy. If you bought an option, the premium is nonrefundable even if you let the option expire worthless. As an option gets closer to expiration, it decreases in value.
It is important to note that most options traded on U.S. exchanges are American style options. In essence, they differ from European options in one main way. American style options can be exercised at any time up until expiration. In contrast, European style options can be exercised only on the day they expire. All the options of one type (put or call) which have the same underlying security are called a class of options. For example, all the calls on IBM constitute an option class. All the options that are in one class and have the same strike price are called an option series.
______ can be exercised only on the day when they expire.
选项
A、American options
B、European options
C、Chinese options
D、Japanese options
答案
B
解析
欧式期权只有在到期日当天可以被执行,而美式期权则不同,可以在到期日前任何一个营业日执行。
转载请注明原文地址:https://kaotiyun.com/show/Fzid777K
本试题收录于:
FECT综合(现代金融业务)题库金融英语(FECT)分类
0
FECT综合(现代金融业务)
金融英语(FECT)
相关试题推荐
Ihavenotimetodoexercises,______I’mverybusywithmywork.
JackhisJoblastweek.Itwasdifficultforhimtofindanother【C1】______.【C2】______toldhimthatitwaspossibletogetanew
JackhisJoblastweek.Itwasdifficultforhimtofindanother【C1】______.【C2】______toldhimthatitwaspossibletogetanew
Intheworld,soccerorfootballisthemostpopularsport.ThisisbecausemanycountrieshavewonderfulteamsformeWorldCup
YOURBUILDINGSERVICE√Wehelppeopleinthispartofthecityby:*checkingallplans(方案)beforepeoplebuildnewhousesorma
Ellenlefthomeearlyyesterdaybecauseatnineo’clockshewasgoingtostartworkatacompanyinthecity.Shewasonlyeigh
Abusinesshasthefollowingfiguresfortheyearended31December2000$Stockatbeginningofperiod85,000Stockattheend
Certificatesofdepositsarenotnegotiableunlesstheyareinadeliverablestate.
Becausetheborrowerdefaultedonhisrepaymentoftheloan,thebankwillholdthe______responsible.
A、Onenight.B、Oneyear.C、Threedays.D、Threemonths.A录音原文提到Thus,thelendingisusuallyforshort-termliquidityneedswhich
随机试题
女性,36岁。饮酒后中上腹持续性疼痛9h,呕吐2次来院急诊。既往体健。体检:体温37.8℃,上腹偏左压痛,伴轻度肌紧张。出现下列哪项提示患者预后不良
蛋白质三级结构关键化学键是
浸润麻醉表面麻醉
我国《公司法》规定,股份公司向发起人、国家授权投资的机构、法人发行的股票必须是记名股票。()
信托资金通常情况下不可以提前支取。()
在对原始投资相同的多个互斥方案选择时,应优先选择( )。
2013年4月,某市税务机关在对甲公司2013年度的纳税情况依法进行税务检查时,发现甲公司有逃避纳税义务的行为,并有明显的转移、隐匿应纳税收入的迹象。税务机关责令甲公司于2013年4月11日至4月20日限期补税,但甲公司在4月20日期限届满后,仍拒绝补税。
受要约人对要约的内容做出实质性或非实质性变更的,为新要约。()
班主任
偏头痛一直被认为是由食物过敏引起的。但是,我们让患者停止食用那些已经证明会不断引起过敏性偏头痛的食物,他们的偏头痛并没有停止。因此,显然存在别的某种原因引起偏头痛。下列哪项,如果是真的,最能削弱上面的结论?
最新回复
(
0
)