Chap 9

Properties of Stock Options Chapter 9

Notation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Effect of Variables on Option Pricing (Table 9.1, page 206) c p C P + + – + + + + + + + + – + – – – – + – + – + Variable S 0 K T  r D ? ?

American vs European Options ,[object Object],[object Object],[object Object]

Calls: An Arbitrage Opportunity? ,[object Object],[object Object],[object Object],[object Object],[object Object]

Lower Bound for European Call Option Prices; No Dividends ( Equation 9.1, page 211) ,[object Object]

Puts: An Arbitrage Opportunity? ,[object Object],[object Object],[object Object],[object Object]

Lower Bound for European Put Prices; No Dividends (Equation 9.2, page 21 2 ) ,[object Object]

Put-Call Parity; No Dividends (Equation 9.3, page 21 2 ) ,[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],Arbitrage Opportunities

Early Exercise ,[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],An Extreme Situation

Reasons For Not Exercising a Call Early (No Dividends) ,[object Object],[object Object],[object Object]

Should Puts Be Exercised Early ? ,[object Object],[object Object],[object Object]

The Impact of Dividends on Lower Bounds to Option Prices (Equations 9.5 and 9.6, pages 21 8 -2 19 )

Extensions of Put-Call Parity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Chap 9

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Chap 9