9.1 rading Strategies Involving options Chapter g Options, Futures, and other Derivatives, 5th edition 2002 by John C. Hull
Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 9.1 Trading Strategies Involving Options Chapter 9
92 Three alternative strategies Take a position in the option and the underlying Take a position in 2 or more options of the same type(A spread Combination Take a position in a mixture of calls puts(A combination) Options, Futures, and other Derivatives, 5th edition 2002 by John C. Hull
Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 9.2 Three Alternative Strategies • Take a position in the option and the underlying • Take a position in 2 or more options of the same type (A spread) • Combination: Take a position in a mixture of calls & puts (A combination)
Positions in an Option the93 Underlying (Figure 9. 1, page 186) Profit Profit K K T T Profit Profit K T K T Options, Futures, and other Derivatives, 5th edition 2002 by John C. Hull
Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull Positions in an Option & the 9.3 Underlying (Figure 9.1, page 186) Profit K ST Profit ST K Profit ST K Profit K ST (a) (b) (c) (d)
94 Bull Spread Using Calls (Figure 9.2, page 187) Profit K Options, Futures, and other Derivatives, 5th edition 2002 by John C. Hull
Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 9.4 Bull Spread Using Calls (Figure 9.2, page 187) K1 K2 Profit ST
9.5 Bull Spread Using Puts Figure 9.3, page 189 Profit K K T Options, Futures, and other Derivatives, 5th edition 2002 by John C. Hull
Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 9.5 Bull Spread Using Puts Figure 9.3, page 189 K1 K2 Profit ST