Put call parity for options open


Options for put parity open call


The time the holderchooses to exercise the options depends on the spot price of theunderlying asset. puh In this sense the exercising time is arandom variable itself. It is obvious dor the Black-Scholesdifferential equations still hold as long as the options are notexercised. However the boundary conditions are so complicated thatan analytical solution is not possible. In this section we studyAmerican options in more detail. The numerical procedures ofpricing will also be discussed in the next section.As shown in Section 2.1, the right to early exerciseimplies that the value of an American option pzrity never drop belowits intrinsic value.

Options are derivative instruments. One of the reasons that option trading and investing is so much fun is that is it like a game of chess.




Put call parity for options open

Put call parity for options open

Put call parity for options open



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