# 数学代写|金融数学代写Intro to Mathematics of Finance代考|MATH424

## 数学代写|金融数学代写Intro to Mathematics of Finance代考|Option Spread Strategies

Option spreads are simultaneous long and short positions in either different call options or different put options (but not both calls and puts). Three general types of option spread strategies are vertical spreads, horizontal spreads, and diagonal spreads. The terms describing the three spreads relate to the visualization of a matrix of option prices with strike price forming the vertical axis and expiration date forming the horizontal axis. Thus, in a vertical option spread, the options differ by strike price; in a horizontal option spread, the options differ by expiration date; and in a diagonal spread, they differ by both strike price and expiration date. This section focuses on the strategies with the same expiration date – vertical spreads.

Figure $1.10$ illustrates a vertical call spread known as a bull spread. The payout of a bull spread at expiration is positively related to the underlying asset, hence it is “bullish” with respect to the price of the underlying asset. The bullish nature of a bull spread occurs when the long call option position is in the option with the lower strike price and the short option position is in the asset with the higher strike price. Interestingly, the same bullish diagram can be generated using put options with the same structure: the long put option position is in the option with the lower strike price and the short option position is in the asset with the higher strike price.

Figure $1.11$ illustrates a vertical call spread known as a bear spread. Bear spreads reverse the direction of the options by establishing the long call option position in the option with the higher strike price and the short option position is in the asset with the lower strike price. Like in the case of bull spreads, the same bearish diagram can be generated using put options with the same structure: the long put option position is in the option with the higher strike price and the short option position is in the asset with the lower strike price.

## 数学代写|金融数学代写Intro to Mathematics of Finance代考|Option Combination Strategies

Option combinations involve simultaneous positions in at least one call option and at least one put option. This section focuses on combinations of calls and puts with the same expiration date and underlying asset. The synthetic long positions in the underlying asset using options (long a call and short a put) and short positions (long a put and short a call) discussed in Section 1.8.1 are option combinations. This section discusses others.

Option straddles have equally sized simultaneous long positions or simultaneous short positions in call and put options with the same strike price (and same expiration date). Figure $1.12$ illustrates the profitability of a long straddle at expiration with a solid line and shows the underlying components of long a call and long a put with dashed lines. The value of a long straddle is positively exposed to the volatility of the underlying asset. A short straddle is the mirror image (i.e., the maximum profit is above $K$ with losses on the far right and left).Option strangles are similar to option straddles, except the call and put options have different strike prices. Figure $1.13$ illustrates a long strangle. Other options strategies can involve option portfolios such as ratio spreads with more calls than puts or vice versa such that the payoffs differ in different directions.

There are many types of stand-alone options on financial assets that differ from simple calls and puts. Some options allow exercise at several specific points in time (a Bermuda option), some are based on functions of prices such as averages or extremes (e.g., Asian options have payoffs based on averaged prices of the underlying asset). Some options cease to exist if the underlying asset reaches a particular level or become exercisable if the underlying asset reaches a particular level such as barrier options.
Financial markets and economic activity in general are full of options. There are options on real assets such as options to: buy land, rent space, return products, extend warrantees, take early retirement, terminate contracts, and on and on.

There are non-traded financial options such as options to pre-pay mortgages and other loans, options to break some bank certificates of deposits (i.e., receive early termination), options to rollover some bank deposits, options to cash out insurance policies, options to increase insurance coverage, and so forth.

# 金融数学代考

## 数学代写|金融数学代写Intro to Mathematics of Finance代考|Option Combination Strategies

myassignments-help数学代考价格说明

1、客户需提供物理代考的网址，相关账户，以及课程名称，Textbook等相关资料~客服会根据作业数量和持续时间给您定价~使收费透明，让您清楚的知道您的钱花在什么地方。

2、数学代写一般每篇报价约为600—1000rmb，费用根据持续时间、周作业量、成绩要求有所浮动(持续时间越长约便宜、周作业量越多约贵、成绩要求越高越贵)，报价后价格觉得合适，可以先付一周的款，我们帮你试做，满意后再继续，遇到Fail全额退款。

3、myassignments-help公司所有MATH作业代写服务支持付半款，全款，周付款，周付款一方面方便大家查阅自己的分数，一方面也方便大家资金周转，注意:每周固定周一时先预付下周的定金，不付定金不予继续做。物理代写一次性付清打9.5折。

Math作业代写、数学代写常见问题

myassignments-help擅长领域包含但不是全部: