期权期货-复习.doc

复习题 Explanation 名词解释 speculators wish to take a position in the market.Either they are betting that a price will go up or they are betting that it will go down. They use derivatives to get extra leverage Hedgers are interested in reducing a risk that they already face. Arbitrage involves locking in a risk-less profit by entering simultaneously into transactions in two or more markets. A call option gives the holder the right to buy an asset by a certain date for a certain price. Put option: A put option gives the holder the right to sell an asset by a certain date for a certain price. Futures （forward）contract: It is an agreement to buy or sell an asset for a certain price at a certain time in the future. short selling: The investor’s broker borrows the shares from another client’s account and sells them in the usual way. To close out the position the investor must purchase the shares. The broker then replaces them in the account of the client from whom they were borrowed. In-the-money option/At the money/ Out out of the money Time value, intrinsic value, option value, risk-neutral valuation: Firstly, assume that the expected return from the stock price is the risk-free rate r, then calculate the expected payoff from the option, at last, discounting the expected payoff at the risk-free rate Factors affecting stock option pricing: stock price, strike price, risk-free interest rate, volatility, time to maturity, and dividends. Long position of forward: A callable bond（可提前赎回债券）: It contains provisions(条款) that allow the issuing firm(发行公司) to buy back the bond at a predetermined price at certain times in the future. risk-neutral valuation: Firstly, assume that the expected return from the stock price is the risk-free rate r, then calculate the expected payoff from the option, at last, discounting the expected payoff at the risk-free rate Swaps： Swaps are private agreements between two companies to exchange cash flows in the future according to a prearran