第二十二章 期权与公司理财：基本概念

Call Option Payoffs
Option payoffs ($)
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40
Buy a call
20
0 0 10 20 30 40 50 60 70 80 90 100
-20
Stock price ($)
-40
-60
Exercise price = $50
Call Option Payoffs
Options Contracts: Preliminaries ❖ Intrinsic Value
The difference between the exercise price of the option and the spot price of the underlying asset.
❖ In addition, capital structure and capital budgeting decisions can be viewed in terms of options.
22.1 Options Contracts: ❖ An optionPgriveelsimthienhaorldieersthe right, but
22.1 Options Contracts: ❖ ExercisingPthereOlpimtioninaries
The act of buying or selling the underlying asset through the option contract.
❖ Strike Price or Exercise Price
❖ If the call is in-the-money, it is worth ST - E.
❖ If the call is out-of-the-money, it is worthless.
CaT = CeT = Max[ST - E, 0] ❖ Where
ST is the value of the stock at expiry
❖ When exercising a call option, you “call in” the asset.
Basic Call Option Pricing Relationships at Expiry
❖ At expiry, an American call option is worth the same as a European option with the same characteristics.
❖ Speculative Value
The difference between the option premium and the intrinsic value of the option.
Option Premium
=
Intrinsic + Speculative
Value
Value
22.2 Call Options ❖ Call options gives the holder the right, but not the obligation, to buy a given quantity of some asset on or before some time in the future, at prices agreed upon today.
Refers to the fixed price in the option contract at which the holder can buy or sell the underlying asset.
❖ Expiry
The maturity date of the option is referred to as the expiration date, or the expiry.
❖ European versus American options
European options can be exercised only at
Options Contracts: Preliminaries ❖ In-the-Money The exercise price is less than the spot price of the underlying asset. ❖ At-the-Money The exercise price is equal to the spot price of the underlying asset. ❖ Out-of-the-Money The exercise price is more than the spot price of the underlying asset.
not the obligation, to buy or sell a given quantity of an asset on (or perhaps before) a given date, at prices agreed upon today.
❖ Calls versus Puts
Call options gives the holder the right, but not the obligation, to buy a given quantity of some asset at some time in the future, at prices agreed upon today. When exercising a call option, you “call in” the asset.
第二十二章 期权与公司理财：基本概 念
22.1 Options ❖ Many corporate securities are similar to the stock options that are traded on organized exchanges.
❖ Almost every issue of corporate stocks and bonds has option features.