l1 60 option markets and contracts

This class was created by Brainscape user Steven Popovic. Visit their profile to learn more about the creator.

Decks in this class (17)

A,B,C
describe call and put options; distinguish between European and American options; define the concept of moneyness of an option;
13  cards
A - D Options Terminology, The Mechanics of Trading Options
No deck description has yet been added by the author.
2  cards
60.F: COMPARE INTEREST RATE OPTIONS WITH FORWARD RATE AGREEMENTS (FRAS)
No deck description has yet been added by the author.
1  cards
a describe call and put options;
No deck description has yet been added by the author.
0  cards
b distinguish between European and American options;
No deck description has yet been added by the author.
0  cards
c define the concept of moneyness of an option;
No deck description has yet been added by the author.
0  cards
d compare exchange-traded options and over-the- counter options;
No deck description has yet been added by the author.
0  cards
e identify the types of options in terms of the underlying instruments;
No deck description has yet been added by the author.
0  cards
g define interest rate caps, floors, and collars;
No deck description has yet been added by the author.
0  cards
h calculate and interpret option payoffs and explain how interest rate options differ from other types of options;
No deck description has yet been added by the author.
0  cards
i define intrinsic value and time value, and explain their relationship;
No deck description has yet been added by the author.
0  cards
j determine the minimum and maximum values of European options and American options;
No deck description has yet been added by the author.
0  cards
k calculate and interpret the lowest prices of European and American calls and puts based on the rules for minimum values and lower bounds;
No deck description has yet been added by the author.
0  cards
l explain how option prices are affected by the exercise price and the time to expiration;
No deck description has yet been added by the author.
0  cards
m explain put–call parity for European options, and explain how put–call parity is related to arbitrage and the construction of synthetic options;
No deck description has yet been added by the author.
0  cards
n explain how cash flows on the underlying asset affect put–call parity and the lower bounds of option prices;
No deck description has yet been added by the author.
0  cards
o determine the directional effect of an interest rate change or volatility change on an option’s price.
No deck description has yet been added by the author.
0  cards

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l1 60 option markets and contracts

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