Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.1
Trading Strategies
Involving Options
Chapter 9
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.2
Three Alternative Strategies
? Take a position in the option and
the underlying
? Take a position in 2 or more
options of the same type (A
spread)
? Combination,Take a position in a
mixture of calls & puts (A
combination)
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.3Positions in an Option & the
Underlying (Figure 9.1,page 186)
Profit
STK
Profit
ST
K
Profit
ST
K
Profit
STK
(a) (b)
(c) (d)
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.4
Bull Spread Using Calls
(Figure 9.2,page 187)
K1 K2
Profit
ST
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.5
Bull Spread Using Puts
Figure 9.3,page 189
K1 K2
Profit
ST
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.6
Bear Spread Using Calls
Figure 9.4,page 189
K1 K2
Profi
t
ST
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.7
Bear Spread Using Puts
Figure 9.5,page 190
K1 K2
Profit
ST
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.8
Butterfly Spread Using Calls
Figure 9.6,page 191
K1 K3
Profit
STK2
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.9
Butterfly Spread Using Puts
Figure 9.7,page 192
K1 K3
Profit
STK2
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.10
Calendar Spread Using Calls
Figure 9.8,page 193
Profit
ST
K
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.11
Calendar Spread Using Puts
Figure 9.9,page 193
Profit
ST
K
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.12
A Straddle Combination
Figure 9.10,page 194
Profit
STK
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.13
Strip & Strap
Figure 9.11,page 195
Profit
K ST
Profit
K ST
Strip Strap
Options,Futures,and Other Derivatives,5th edition ? 2002 by John C,Hull
9.14
A Strangle Combination
Figure 9.12,page 196
K1 K2
Profit
ST