Lecture 7 and 12 Notes
FINC3012 - Derivative Securities
10 Pages • Partial Study Notes • Year: Pre-2018
Lecture 7 – Trading Strategies Involving Options Trading Strategies Involving Options: • How options can be used for hedging a pre-existing position in the spot market, and for speculating on subsequent spot movements. • Hedging o Fiduciary call writing o Covered call writing o Protective put buying • Synthetic futures contracts • Speculating o Spreads o Straddles o Other • Fiduciary call writing o Writing call options against an asset already held o Involves frequent rebalancing to maintain a hedged position • Covered call writing o Hedger simply writes one call option for each unit of asset held • Synthetic puts o Created by one call option for each unit of an asset sold short • Protective put buying o Purchase of put options to insure a long asset position • Synthetic call o The combination of a short asset and a written put Creating Synthetic Futures Contracts: • Options can be combined to create synthetic
This document is 10 Exchange Credits
More about this document:
|
|
This document has been hand checkedEvery document on Thinkswap has been meticulously hand checked to make sure it's correctly described and categorised. No wading through heaps of irrelevant content. |
|
|
This is a Partial Set of Study NotesPartial Study Notes typically cover only single topics of a unit of study or do not cover multiple topics in significant detail. They are generally less than 20 pages in length. |
|
|
What are Exchange Credits?Exchange Credits represent the worth of each document on Thinkswap. In exchange for uploading documents you will receive credits. These can then be used to checkout other documents on Thinkswap. |
|
|
We aren't happy till you're happyEach document purchased on Thinkswap is covered by our Satisfaction Guarantee policy. If the document is not of an acceptable quality or the document was incorrectly described or categorised, Thinkswap will provide a full refund of Exchange Credits so you can purchase another document. For more information please click here. |
Students are required to always deal ethically with work on Thinkswap
Studying from past student work is an amazing way to learn and research, however you must always act with academic integrity.
This document is the prior work of another student and has been made available to plagiarism detection tools. Do not copy from this work. Understand how you can responsibly use this work by visiting ‘Using Thinkswap resources correctly’.
Similar documents to "Lecture 7 and 12 Notes" avaliable on Thinkswap
Documents similar to "Lecture 7 and 12 Notes" are suggested based on similar topic fingerprints from a variety of other Thinkswap Subjects