Understanding Stock Options by Jangoint - HTML preview

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(AND THEIR RISKS)
UNDERSTANDING STOCK OPTIONS (AND THEIR RISKS)

A. INTRODUCTION 2
B. THE CHARACTERISTICS OF 3 EXCHANGE TRADED STOCK OPTIONS

What is an Option? 4
Pricing of Stock Options 6
Uses of Options 9
Exchange Traded Options 11
Exercise and Settlement 13
Capital Adjustments 15

C. COMMON OPTION STRATEGIES 16
D. THE RISKS OF EXCHANGE TRADED 23 STOCK OPTIONS

Risks faced by Option Holders 23
Risks faced by Option Writers 25
Other General Risks 27

E. HONG KONG EXCHANGES AND 31 CLEARING LIMITED’S STOCK
OPTIONS MARKET

Trading System and Products Traded 31 Options Exchange Participants 31 00001.jpg