The Fundamentals of Options and Futures and Simple Strategies for a New Trader
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Authors
Frye, James
Issue Date
2012
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
The purpose of this paper is to present a basic understanding of the complex ideas and concepts used in options strategy. Hedgers and speculators bid and compete in open outcry pits and over electronic exchanges, and the volatility present in commodities markets provides the opportunity for profit to be made on mispriced options. The prospect of limited risk and unlimited reward makes options extremely valuable, but careful monitoring of volatility and other market factors determine the accurate theoretical price. An introduction to options and futures and a basic understanding of tools and strategies used by hedgers and speculators is essential to success in these exchanges. With first hand experience as a commodities options clerk using real-world examples, I will cover a brief history of options functions, terminology, strategies, and a brief discussion of a theoretical option pricing model. The following is a brief summation of my internship and the fundamentals of options and futures trading.
Description
iv, 22 p.
Citation
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License
U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.