The Keller Fund

Friday, June 17, 2011

The Keller Fund’s Option Investment Strategies

Group 4 Anthony Distasio Di Yang Jia Geng Qi Ren Xiaoning Cao

The Keller Fund

Friday, June 17, 2011

The Keller Fund’s Option Investment Strategies

Group 4 Anthony Distasio Di Yang Jia Geng Qi Ren Xiaoning Cao

The Keller Fund

The Keller Fund’s

Option Investment Strategies

Question 1: What’s an option, and how does an option compare with other types of financial instruments?

In finance, an option is a derivative instrument that specifies a contract between two parties giving its owner the right to buy or sell an asset at a fixed price on or before a given data. Options grant the buyer the right to engage in a transaction that will be advantageous to do so. The price of an option derives from the reference price and the value of the underlying asset (commonly a stock, a bond, a currency or a...