Chapter 2 The Structure of Options Markets 衍生工具与风险管理课件.ppt

D. M. Chance An Introduction to Derivatives and Risk Management, 6th ed. Chapter 2: The Structure of Options Markets If the financial markets are a war zone, this is the theater of hand-to-hand combat. Richard Thomson Apocalypse Roulette, 1998, p. 49 Important Concepts in Chapter 2 Definitions and examples of call and put options Institutional characteristics of options markets Options available for trading Placing an options order The clearinghouse Accessing option price quotations Transaction costs Regulation of options markets Margins and taxes in option transactions Option terminology price/premium call vs. put exercise price/strike price/striking price expiration date Everyday examples of options rain check discount coupon airline ticket with cancellation right right to drop a course The Development of Options Markets Early origins Put and Call Brokers and Dealers Association Chicago Board Options Exchange, 1973 Resurgence of over-the-counter market Call Options Current example Objective of a call buyer Moneyness concepts In-the-money Out-of-the-money At-the-money Put Options Current example Objective of a put buyer Moneyness concepts In-the-money Out-of-the-money At-the-money The Over-the-Counter Options Market Worldwide Credit risk Customized terms Private transactions Unregulated Options on stocks and stock indices, bonds, interest rates, commodities, swaps currencies Organized Options Trading Listing Requirements Contract Size Exercise Prices Expiration Dates Position and Exercise Limits Options Exchanges and Trading Activity See Table 2.1, p. 29 for options exchanges Option Traders The Market Maker Bid, ask, and bid-ask spread Scalpers, position traders, spreaders The Floor Broker Designated primary market makers Dual trading The Order Book Official Limit orders Electronic order processing Options Traders (continued) Other Option Trading Systems Specialists Registered options traders Electronic trading systems Off-Floor Option Traders Cost and Profitabi