Call Payoff Diagram

37문장 0% 중국어 번역 0명 참여 출처 : 칸아카데미
0 영상보기
영어 to
중국어
2단 보기 1단 보기
번역 0%

Call Payoff Diagram발음듣기

다른 번역문 등록

Payoff diagrams are a way of depicting what option or set of options or options combined with other securities are worth at option expiration.발음듣기

다른 번역문 등록

What you do is plot it based on the value on the underlying stock price, and I have two different plots here.발음듣기

다른 번역문 등록

One that you might see more in an academic setting or a textbook, and one that you might see more if you look up payoff diagrams on the internet people actually trading options.발음듣기

다른 번역문 등록

But they're very similar; this one just worries about the actual value of the options at expirations and this worries about the profit and loss.발음듣기

다른 번역문 등록

So this one will incorporate what you paid for the option, this will not.발음듣기

다른 번역문 등록

This just says what it is worth.발음듣기

다른 번역문 등록

With that said, we have company ABCD trading at $50 per share.발음듣기

다른 번역문 등록

And then we have a call option with a $50 strike price, or $50 exercise price, trading at $10.발음듣기

다른 번역문 등록

Which tells us that the owner of that option has the right but not the obligation to buy Company ABCD stock at $50 per share up to expiration, assuming it's an American option.발음듣기

다른 번역문 등록

If it was a European option, it would be on expiration.발음듣기

다른 번역문 등록

So what is the value of this option at expiration? So this is value at expiration.발음듣기

다른 번역문 등록

So if the stock is worth less than $50, the owner wouldn't execute it.발음듣기

다른 번역문 등록

They wouldn't exercise the option.발음듣기

다른 번역문 등록

So the option would be worthless.발음듣기

다른 번역문 등록

It would be worthless.발음듣기

다른 번역문 등록

They would just let it expire.발음듣기

다른 번역문 등록

No reason to actually exercise the option.발음듣기

다른 번역문 등록

Now, if the underlying stock price is worth more than the $50, if its $51 then you would exercise it,발음듣기

다른 번역문 등록

because now the option is worth $1. You can buy something for $50 and now sell it for $51.발음듣기

다른 번역문 등록

So its now worth $1. If the underlying stock price is $60, of course you would exercise it [as] its now worth $10.발음듣기

다른 번역문 등록

Because you can buy something for $50 and you can immediately sell it at $60.발음듣기

다른 번역문 등록

We're saying that the underlying stock price is $60, so it would be worth $10.발음듣기

다른 번역문 등록

And so you have a payoff diagram that looks something like this: a kind of hockey sticks.발음듣기

다른 번역문 등록

Below $50 its worthless, and then above $50 all of a sudden it becomes worth something.발음듣기

다른 번역문 등록

Now if you do it in the profit and loss model all you have to do is incorporate what you actually paid for the option.발음듣기

다른 번역문 등록

So in this situation below $50 you still would not actually exercise your option because why would you pay $50 for something that is actually trading for less than $50?발음듣기

다른 번역문 등록

But you would say "Hey, I would have had to take a $10 loss because I paid $10 for that option"발음듣기

다른 번역문 등록

So up until $50 your profit is -$10, you have lost $10 dollars, you have lost the price of the option.발음듣기

다른 번역문 등록

Because you wouldn't exercise it.발음듣기

다른 번역문 등록

Then all of a sudden the stock price goes above $50 you would exercise it but you would still have a negative profit because you still haven't made up the price of the option.발음듣기

다른 번역문 등록

All the way up until $60, at $60 per share for the underlying stock price you could exercise the option:발음듣기

다른 번역문 등록

buy the stock at $50, sell it at $60, you would make $10 doing that but of course you had to spend $10 on the option so there you would break even.발음듣기

다른 번역문 등록

But then as you get above a $60 stock price at majority, then all of a sudden you start to make money.발음듣기

다른 번역문 등록

So these are both legitimate payoff diagrams for a call option, for this call option right over here.발음듣기

다른 번역문 등록

They're just different ways of viewing it.발음듣기

다른 번역문 등록

This is the value of the options, this incorporates the actual cost of it.발음듣기

다른 번역문 등록

칸아카데미 더보기더 보기

전체보기
Top