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
18
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.
If you are a put seller, you have to ______ in order to offset the original deal.
选项
A、buy a put at a lower strike price and earlier expiration
B、sell a put with the same strike price and expiration
C、buy a put with the same strike price and expiration
D、sell a put at a higher strike price and earlier expiration
答案
C
解析
如果卖出看跌期权,相应的对冲交易则为买入相同执行价格、相同到期日的看跌期权。
转载请注明原文地址:https://kaotiyun.com/show/Tzid777K
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
Itisveryimportantforacompany______agoodofficesecretary.
In1826,aFrenchmannamedNiepceneededpicturesforhisbusiness.Buthewasnotagoodartist.Soheinventedaverysimplec
Intheworld,soccerorfootballisthemostpopularsport.ThisisbecausemanycountrieshavewonderfulteamsformeWorldCup
YOURBUILDINGSERVICE√Wehelppeopleinthispartofthecityby:*checkingallplans(方案)beforepeoplebuildnewhousesorma
TheBrownsspent______holidaysinthecountrylastsummer.
A、No,youcanuseyourcreditcard.B、Yes,youcanuseyourcreditcard.C、Yes,youcannotuseyourcreditcard.B
accept,discount,against,dishonoured,attached,hypothecation,credit,draw,ownership,amountWhenaLetterofCredith
accept,discount,against,dishonoured,attached,hypothecation,credit,draw,ownership,amountWhenaLetterofCredith
Futurescontractsusuallyendinthedeliveryoftheunderlyingcommodity.
A、preferredstockB、commonstockC、conceptstockD、cynicalstockB录音原文一开始就提到It’snosecretthatthroughouthistorycommonstock
随机试题
关于“人际关系学说”主要内容描述正确的是
男性,35岁。被汽车撞伤,全腹剧烈疼痛,血压90/60mmHg(12/8kPa),脉搏100次/min,呼吸34次/min,收门诊留观期间禁用
胸部局部压痛常见于
某医师随机抽取正常大白鼠13只,由测得的内毒素x(μg/ml)与24小时肌酐清除率y(ml/分)的数据算出Σx=1.32Σ=0.15Σxy=189.19Σy=1728.03Σy2=244464.11
影响正常人舒张压的主要因素是
在敏感性分析中,为了找出关键的敏感性因素通常多进行()。
根据《中华人民共和国海关法》的规定,进口货物的收货人、出口货物的发货人、进出境物品的所有人是关税的纳税义务人。()
公安执法监督的内容是公安机关及其人民警察在执行职务活动中()。
甲公司业务经理乙长期在内餐厅签单招待客户,餐费由公司按月结清。后乙因故辞职。月底餐厅前去结账时,甲公司认为,乙当月的几次用餐都是招待私人朋友,因而拒付乙所有签单的餐费。下列哪一项是正确的?()
SincethemostcommonlyacceptedtestistheToEFLexam,mostinstitutionswillexpecta________ToEFLscoreforadmission.
最新回复
(
0
)