FIN 4504 Section 2174 Fall 2014 (Equity and Capital Markets Lecture 22)

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FIN 4504 Section 2174 Fall 2014 (Equity and Capital Markets Lecture 22)

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Options Markets (BKM Ch15) What is an option? Call option and put option Terminologies and sample questions Next time: HW4 due 2 Terminology • • • Call Option – Right to buy an asset at specified exercise price on or before specified expiration date Strike Price or Exercise Price – Price set for calling/putting asset Premium – Purchase price of option

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Pages: 30
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