1. The second part is an overview of the trading strategies which may be created using traded options.
2. Traded options usually cease on the third or fourth Wednesday of the month in which they are due to expire.
3. Traded options allow investors to enjoy the price movements of the underlying security at a fraction of the cost of buying that security.
4. Traded options can be used to secure a predetermined price for a security within a given period in the anticipation of a certain cash inflow.
5. Having taken a look at the nature of, and influences upon, options, we can now examine the investment strategies which may be created using traded options.
6. What sources of inaccuracy would you expect to find when using the Black-Scholes model to estimate the values of traded options?
7. Such tailor made option contracts should be distinguished from the traded options we consider here.
8. The initial low volume of stock option deals gave rise to doubts as to whether demand existed in the UK for a traded options market.