曼彻斯特商学院课件－期权.pdf

Reading • Hull Chapter 1: Perhaps re-read the section on options which is in sections 1.5 – 1,10. • Hull Chapter 7: This starts with the basics of options and then goes on into the specific details of trading. Read up to 7.4 for the crucial details and the rest if you’re still interested. • Hull Chapter 8: This is quite interesting but perhaps a little technical at this point in time. The most important part as regards the lecture is 8.4 and perhaps 8.5. 8.1 is interesting to see the crucial factors in determining the price of an option and will be useful for future reference (i.e. the last two weeks). • Hull Chapter 9: Quite a nice chapter explaining options strategies, I’m going to work through a sample of these in class so it may be useful to famililiarise yourselves with the principal strategies. Copyright, Martin Widdicks, 2004 Reading • HBR Article: Stock options have had a very negative press of late and here we have Nobel prize winner Robert Merton and other high-profile academics discussing some of the issues and argue for stock options to be put on the balance sheet. This will actually come into force at the start of 2005. Copyright, Martin Widdicks, 2004 Options: Introduction • Futures contracts are contracts which cost nothing to enter. This is because if you are in the long position you gain when the spot price of the underlying asset, S, rises, you also lose when the price goes down (and vice versa with the short position). • An option is similar in many ways to a futures contract in that you have the right to buy (or sell) at a certain price in the future (this time it is called the exercise price). However, the principal difference is that