valofye onthe depcnd, doatie Vele

alye valuatio LA.

nbamart o
finomia ther Dotvates
gtiong
cxchong
flos cash fture fnaodsterdadietto fcterts;
date pehid
aon
perfornance ’
antat ieErt pria thana othoguorateer dowateo Some
tare. il moty Conrtrats
usin
d
date kiture
’undel: elenent Cammon
pne hetare asset foruerds
bone shauddoriate
an futire
agrcement
aLan Ar
An*
selley -fture
undonlging 4an value fitne fprbt tokeps
ae
aganst itk hdge anyto
qsset an
undoy qsset
from valyce daives that L1tum
ent
pie guntonteaa thatmytig Deiwatie
 fonad conhact: lo kgs
then valye th
brodcontract i loo

Value cay ase be -ve

, Sometimy

)Ovey the Counto(oT) doiwateey

3 bahnge tated dewatiesaded on eahange
Gontracts ae matured, they mart on to erchange
ONe ofc

fyoed Contbat atonsale

potng tor beth portie
gTteat
cunterporto' for brth
 Loy bniofrtiaitbne

-S

Rice

praad Contg Sppet fne t

by belivory
lngftonod: Prce
Shord-brtood:

Settlem ent igel te pogf A

Carh et tteshr
oygical settenentey
t doenit affet rayf

q$sume, Contiact
premiem
d_one pite'eakae iptbly
hare same valie
 bgbuky
PUO)
incre

Yate
fV-t

date ortat
 6al 12 o
yo=
ie Spot tl
then, nome any thoe ’1f
'oo(o)=
9 fe
asjuming
fes(49*
t
he.
awith
Yate otree 6%D=oo
trnd premim
br thethewhatir HU:
Gntact,
korps afer
kank fom mo
fonsard
bie belhay
ie prenim, 2Oo but
be
 Osl
agement
fproche SBI

23r%,00o

hen he ol! get or2yx 2900

Slorgfons
4

2o month eg
2 hrdr itort atgi

Gnting
 fotood
prie
,fonord pice e ghote hsame cyrencg as pot
-0-0|» 2
|2

uhencits ore
to fprciete

futures Vanpbe

Satercot
cont
daily rettement Hhat ctenot get
aheno closet
sellBuy
Bug Buy
A
1

Sinteeyt o (2
Volqmez 2 but oen (o9 Volyme 2
ortacts
hadet on rat

B
Shert 0T-2
 st ndrded, ine
Contract koer mut be

fooocarbonContctr
MC phnto
tt
=
pie fgoo
toik deltg

tor afeture, Gontgct

obihage gortent
tder an
=-Jst
-1Bxe

t2'

mestmont
2
p
moled,

bhort stock

+|:2 2&oinvtmert
nmto eiContact, hate

pie
is the fttre trie y the del:e

forfonsd pia

fo=be
dour, fuet
as tine te moty goey to
fetures than pt
othowse yrcally,

yates
’Nandhuted
ould ke 2 monthe ktrre pie?
ohat
2

oo9

are

any
uture conhect getin
getot
lobot ontede
Contrah
San 24

he aseE
 Value a forloord Contnt

valie at mt nedintg

Mar ; A
A-buyd
=64
June : A,t ageer to cye contrac, tencoho shald peyt

O-o6.
shot o.063
f2re
P
o'6 6x
F26392
-2S8
254xe
2653"42 612

D=2r )

2s98S3an Corple
2rnxos6)

tmas
ScHlemat
-o-o6x
Pys A (3.ye
 noco

(Jen
ontact ’fet Prie 2214.
-20%
t- 13y
D=2r

set fonod Cantect

 mont eopectab ans ypot frie at imataity
degt velct

Camot
at it tree yate
gelo

at nk fee yae,
cotan
ccntan
Counterperty mk
Ccount
mrgin

20
295 +5 debited to
2?2 -3
2
to
Met
t fpturercontact

gcouht
 balance shold ner
aCaurt
2
lmonth lture pfie =2Is
foe

thot lutue,
stot at cunent

Snthete Bormng
sell stoct,
Shot stoct(hstet)

Yate
Yin
rate
 L>erete
optin, call the
pie ret
Lelos Dont
option exse
fie sbike
pashcd piqstikepi
at eerise prie rd
a at
suo'y ordolying e
buy ygltt thproider opion’tal
 Pt premiuym S?
Seena

Long the Gal Short the Call

xercire Sell asset k
By, aset k
Not ereched

baepean ptony: fayt degendent on stet pite on esi)

PE
(ut fnpean)
exerYE <ption any time betore expiy
fonean Optni Can exerare
CA PA
Call amecar)
Ce=r
cA =(-. t : bre cire time eTT
In the money arm) Call opton’ stk
price
befefe
Out of the maney (at) aloptin <k
 all pt

-Shortcall

prenat k=l4to
prentam

-lig pt
-short prt

ptpenim, 139 144o=k

- |3$4

Why options dewatit age regd hen futare are aroty

Gtt helps t lxk tha pice &at the Same fme t pne

froude
 oM shen toapiny
fAmenian ptenr
ae tort oimple,
more

both Oe
aoe
Atndjicom optios rfyean optiohr
Higbo featyef kssy features
lersen pice
orstdoyed kohy iniestonentsi
Option

Kuy tooshane
months hter, fpot prie =6o
Oe
Retuyn = 20d
(oo shaoes,
Femiajn ohge
toe call ptons
say if you ky Spt =6o8
Same scenatio tock

Retmelooo
2montlr
Retun --lot
fom call
keturn -loo

e
isky muglmart
 dorth ntongc ptine Valye expy, *t
fAntis
(2
more the opton put 2o0
S-29:
ime
lale premiume caenttr
optans, orm fy, Monel.
otho dhtrinsic
te avt thiat opbn anfor wohisTnbinric ’
29-l||E Val=ae Tme
29 um
pmi
=ntinse
b4 premaam al
options foite2o
call
288 So
 Core to expivg
Tremiqms Lw
Tine hhe frv)’o
’when TV>o,
to l the op ton than KO0Iing
stmplk te vnd ption pkes
3 nee be k,
| option Kies an
Rt

be mire than sptpie

2 Gall ortncan neor

2o call option

Why. css?
(ortfslio: Longcatl' i
tong
for tfolko IL: Sok

So <k dothal Cort

Sp-k
oytfoko
rtto
beceurf dovantng
Fortfilr
 tohtbayens fst getr alated
ren
3 CA Lw

PA
Ce
fertfotoA Long
to be
nlye mataity
Zutial Cot

thny
 PAEA
eataton
cali-pta
+t= aty'
C+
PV
Pc) poity call ’At
6ttlio
k& 4
vafygtyatt sema has
piie
Poytoio
Portfolio
B)
Comper
ate
ptoptin
f)outCancel i thee2
Portfolo
Valae
matunityT obike
k, with call kong PBtB:-oko
stte* with put ng A:,
Jtock, Long Portfoo
maturty7
 Sfec+PUK)

Long (all =lo

P+$-ok)
Rat
undl

’Ameian al ptrn on a
nondividend pagigtk
I month to expiy eanpean all ptin

(2 late than

ano an opt
’ 0n q nor-dsndend rying tock,
alremoi dot exenige t noo

eyrcire maybe
 in the mon ey
Zoo pet opbon (in

ke optimal
ditdeds

ftue-vgot foy = utures fice- Spot price

29-1= |
(alloptin pie- allopton, inbinsc e

Rremum
 porito
o2
piat)
fok

in kp

we ce hot using
n alaleing ,
ina

|-25 at tihe peiod)

1-24 Ngus discant a

 lo

all
vcte
heresen

YT -’ febmy

6es e
Merch
 a)
loo
tbo

02 Je cayse

Sxllot B(o2)
Ax o+B (-o2) =

4--o- 2 heans
B= 26.96

rtal peosty

loo +1-95 2g2 +rV()

Modd irdepeedent4holds for any

y quik chek to tet
 NA

Hat thoe if no

Jntoert R)
2

theorefical
pobabilitrt, probabilbe,

deo-9
'rv
(ptopn prein)
(·02
td<R<u)
gven, u=l:t, deo., R=ko2
o/2 o6

l'02

proabilie
r% neutyal thiyetical
C-o
o.6xIs-toyxo
loo-call.
ylo

o6xlo to.4ro r
|02

ky imptt pommeto, mamy stck

the anmaled
anabæd vohtdh
voktiy 4 the
In precbie t -h
hsleg

Say, tor =lot,

4e e

k<e
R-d
u-d
 -te

Loo-cal! lob-put
2)
llo
99
loo
81

stetpie
’2

o6x2)tolro
l22r
L-26
o6x12

o29
o39 338).
S19.

= o39
ko2 (-02

-33e)
 lopd(9
2)
2
26 3sgFo4. 19

Cyz o-3
PA

hew
A loo:

6V=lo
io2
-lo
= lo

prie
Hake max fit
loo-cA
Atllo
Gy(234 evsto
23s CV=426

*26 WEO, Veo

Arean
 as
becae
in , Yer t
<R<u, tyee: nld a Le teordeor
here
loo
lor
TrAddstie
ee
|lo
3
(o2
ataey'nodle
pokabicte Rstnata
2
J»o2
>20
sames b. fheep the tee. on e each fam
mbeneut ted litre prohabivistneutral FinR-2t3
d
osnhle
 tnye
A
lworth? Tatibie ame
rArnerian
call hofdo
alee, thee al 9
2
(ro2
the n
pis
ie sbske 20
Bo