Question: Short answers please Whats the difference between call options and put options, and when do you want to exercise each? (Hint: exercise strategy should discuss
Short answers please
Whats the difference between call options and put options, and when do you want to exercise each? (Hint: exercise strategy should discuss the stock price at expiration relative to the strike price)
How does current stock price, strike price, and volatility affect the price of call options?
How does current stock price, strike price, and volatility affect the price of put options?
What is putcall parity?
How can you use options to get portfolio insurance?
How do you construct a replicating portfolio in the binomial option pricing model?
How does the replicating portfolio for a call option differ from the replicating portfolio of a put option?
Explain how a replicating portfolio is the central idea behind option pricing?
Whats the difference between a butterfly spread and a straddle?
Whats the difference between a protective put and a covered call?
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