Skip to Main Content
Derivatives and Risk Management, 1st Edition
book

Derivatives and Risk Management, 1st Edition

by Sundaram Janakiramanan
May 2024
Intermediate to advanced content levelIntermediate to advanced
542 pages
27h 26m
English
Pearson India
Content preview from Derivatives and Risk Management, 1st Edition
Combinations of Options: Trading Strategies 297
–70
–60
–50
–40
–30
–20
–10
400
0
10
20
30
Stock Price at Maturity
Gain
420 440 460 480 500 520
Figure 13.4 Gains from Written Call Positions
80
60
40
20
400
0
20
40
60
80
Stock Price at
Expiration
Gain
Gains to Call Buyer
Gains to Call Writer
420 440 460 480 500
520
Figure 13.5 The Gain for the Call Buyer and the Call Writer
e call writer will make a maximum gain, equal to the option price they received at the time of writing
the call. is happens when the stock price on the expiration date is less than the exercise price. However,
the loss could be high if the stock price increases considerably beyond the exercise ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Derivatives and Risk Management

Derivatives and Risk Management

Madhumathi Madhumathi, Ranganatham Ranganatham
Derivatives and Risk Management

Derivatives and Risk Management

Sundaram Janakiramanan

Publisher Resources

ISBN: 9781299447547Publisher Website