首页
登录
职称英语
Once you own an option, there are three methods that can be used to make a p
Once you own an option, there are three methods that can be used to make a p
游客
2025-06-20
26
管理
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. [br] As an option comes to be closer to expiration date, it ______.
选项
A、increases in value
B、devalues
C、lowers its premium
D、increases its premium
答案
B
解析
期权越接近到期日,其价值就越低。
转载请注明原文地址:http://tihaiku.com/zcyy/4126283.html
相关试题推荐
Thepriceatwhichanunderlyingassetcanbepurchasedorsoldiftheoptionis
Thesearefourmainmethodsofsecuringpaymentininternationaltrade:(1)paym
Whenhomebuyersexpecttheirincometoincrease,______areidealoptionsforthe
Onceyouownanoption,therearethreemethodsthatcanbeusedtomakeap
Onceyouownanoption,therearethreemethodsthatcanbeusedtomakeap
Onceyouownanoption,therearethreemethodsthatcanbeusedtomakeap
Onceyouownanoption,therearethreemethodsthatcanbeusedtomakeap
[originaltext]Currencyoptionsmayhavetwokindsofvalue,intrinsicvalue
[originaltext]Currencyoptionsmayhavetwokindsofvalue,intrinsicvalue
Onceyouownanoption,therearethreemethodsthatcanbeusedtomakeap
随机试题
Theexaminerreadsoutascenarioandgivesyousomepromptmaterialintheform
DearMrGrant,IamwritingfortheSchoolsAssociationwhichmeet【M1】_________
Socialcontrolreferstosocialprocesses,plannedorunplanned,bywhichpe
A.mg/L或%(W/V) B.mg/kg或%(w/W) C.ml/L或%(
配制水泥混凝土时,水泥强度等级的选择应与混凝土的设计强度等级相适应。()
某金融产品,下一年度如果经济上行年化收益率为8%,经济平稳年化收益率为5%,经济
教师专业化发展经历( )阶段。A.非专门化——专门化——专业化 B.专门化—
一、根据所给资料,回答题。 根据上述资料,以下说法正确的是:A.2021年
对影响人的诸多因素叙述不正确的一项是()。 A.遗传对人的发展提供可能性
电气火灾爆炸是由电气引燃源引起的火灾爆炸,电气装置运行中产生的危险温度、电火花和
最新回复
(
0
)