Derivatives & Options(英文版)(ppt 39頁)

Derivatives & Options(英文版)內容提要：
Terminology
Derivatives - Any financial instrument that is derived from another. (e.g.. options, warrants, futures, swaps, etc.)
Option - Gives the holder the right to buy or sell a security at a specified price during a specified period of time.
Call Option - The right to buy a security at a specified price within a specified time.
Put Option - The right to sell a security at a specified price within a specified time.
Option Premium - The price paid for the option, above the price of the underlying security.
Intrinsic Value - Diff between the strike price and the stock price
Time Premium - Value of option above the intrinsic value
Terminology
Exercise Price - (Striking Price) The price at which you buy or sell the security.
Expiration Date - The last date on which the option can be exercised.

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