Such buying or selling may take place on either a set date or a time before the date. The contract that enables such kind of financial trading to take place is referred to as option. There are several option strategies that may be used by the seller. Studies have actually showed that how careful a seller is in selecting an option goes a long way to determine the success of the transaction. This study gives emphasis to two of these option strategies namely plain vanilla and combined options. 1 Problem Definition and Objective The recent development of financial markets is connected with growing uncertainty of market participants. The current conflict in Syria, contrary expectations on the start of the Fed’s reduction of the quantitative easing program as well as mixed signs on economic growth in the US and Europe, are fueling investors fears. In this regard, investors are searching for strategies to manage market movements and minimize exposure to risk. Fortunately, there exist various market instruments that enable risk transfer to other more risk-tolerant market participants. Those instruments are called options and belong to the category of derivatives. Investors are able to trade in derivative instruments offering both – great potential returns and loss. Due to the large investment universe of derivatives, the author is going to reduce the complexity by analyzing the most common option strategies: plain vanilla and combined options. The goal of this project paper is to analyze and demonstrate motives using options in different market conditions to support investors in their investment decisions. Quelle zum ersten Satz 2 Course of the Investigation To introduce the topic of the analysis of option strategies, the theoretical fundamentals of options will be presented in the second chapter. First of all, the definition and delimitation of the term “option” are covered to give the reader a general introduction into the topic. A deeper insight is going to be provided by characteristics and main factors influencing the option price. In this regard, the reader will get the main overview of the theoretical framework. To reduce complexity and give investors a comprehensive overview on common strategies, the author will start with the analysis of plain vanilla options. In the following chapter, the focus will switch to combined option strategies to increase the quantity of investors’ scenarios. In conclusion, all significant observations will be concisely summarized. In this regard, the author is going to break down an illustration with option characteristics 2 Theoretical Framework of Options 1 Definition and Delimitation of the term “Option” (des Optionsbegriffs) An option is generally a contract that gives right to a buyer to complete a buying or selling transaction on a specified date or before the date at a strike price (Frenkel, 2009). The rate at which financial markets are growing have given rise to the use and availability of as many forms and types of options as
Project Paper Fall Term 2013 Analysis of Plain Vanilla and Combined Option Strategies Name: Address: Submitted to: Submission Date: Table of Contents Table of Contents 1 List of abbreviations 1 List of figures and tables 2 1Introduction 3 1Problem Definition and Objective 3 2Course of the Investigation 3 2Theoretical Framework of Options 5 1Definition and Delimitation of the term “Option” (des Optionsbegriffs) 5 2Characteristics of Options 5 3Main Factors Influencing the Option Price 6 3Conception of the four Plain Vanilla Strategies 8 1Long Call 8 2Short Call 9 3Long Put 9 4Short Put 10 4Introduction to Combined Option Strategies 11 1Covered Call 11 2Protective Put 11 3Straddle 12 4Stran…
Combined Statistical Areas are created automatically when a 25% or more employment commuting i-e interchange occurs. The option of creating a Combined Area was made available by the Congressional delegation of USA for areas that range between 15 – 25% for the employee interchange.
With choice, the patient is offered the available and suitable options on which he must choose from. This also involves a planning process as elaborated by Jackie Birmingham in her article “Patient Choice in the Discharge Planning Process.” There are factors that must be considered in providing for the best array of discharge options to the patient such as federal regulations that will ensure the full recovery of the patient.
Economic problems are solved largely through markets and marketing effort, with consumers free to make appropriate decisions of their own choosing. Therefore, perhaps it is best depicted as profit-oriented -- an economy in which customers and consumers are the focus of economic effort and in which marketing is the driving power.
In the last half of the twentieth century, the world has seen a considerable reduction in international trade barriers and an increase in people’s income levels have provided an economic impetus towards the development of global markets. The formation of bodies such as WTO and GATT have eliminated trade barriers between countries since the WW2.
Structured Corporate Governance principles are necessary for listed companies and are especially useful in case of corporate failures where standards and effectiveness of the board and control systems could be flawed1.
The Cadbury report laid the foundation for corporate governance in listed companies published in 1992 and other standards and guidance have appeared in recent years (Cadbury Report, 1992; Dedman, 2002).
The essence of the plain view doctrine is that it allows law enforcement officers to effect warrantless seizures when the evidence/contraband is in plain view. (LaFave, 1983). The officer may not disturb other objects to obtain a better view. The Supreme Court, in the case of Texas v.
Some of the key events that this century will be remembered for include: countless civil wars, senseless chains of assassinations (Martin Luther King, Anwar Sadat, the Kennedys, Gandhi and Rabin), the tragedy of Hiroshima and humanity in Gulag, and blood baths in
Burger King has used different tropes to help in its advertisement that include hyperbole, metaphors, paradox, and irony among others. However, the prevailing trope is hyperbole that includes the exaggerations and
The village flower company majorly serves the Kansas City region. It specializes in the supply of flowers with elegant designs. The village flower also provides beautiful green and flowers with silk arrangements during mother’s day. It offers flowers with innovative and fresh designs and it personalizes the floral experience.
Waters highlights different options available for white Americans when it comes to choosing among varied ancestries available. They have the option of choosing the most desired ancestry in order to claim it (Waters
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