衍生工具与风险管理-im06.docVIP

CHAPTER 6: BASIC OPTION STRATEGIES END-OF-CHAPTER QUESTIONS AND PROBLEMS 1. When a call is purchased, the buyer pays for both the time value and the intrinsic value of the option. As the call gets closer and closer to expiration, it will lose its time value. At expiration of the call, the holder collects only the intrinsic value. By selling the call prior to expiration, the holder is able to recover some of the time value previously purchased. For a given stock price, this increases the profit or decreases the loss; however, the shorter the holding period, the less time the stock price h