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Introduction to Option Management

  • Szymon Borak
  • Wolfgang Karl Härdle
  • Brenda López-Cabrera
Chapter
Part of the Universitext book series (UTX)

Abstract

In this chapter we discuss basic concepts of option management. We will consider both European and American call and put options and practice concepts of pricing, look at arbitrage opportunities and the valuation of forward contracts. Finally, we will investigate the put-call parity relation for several cases.

Keywords

Cash Flow Stock Price Call Option Saving Account Arbitrage Opportunity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  • Szymon Borak
    • 1
  • Wolfgang Karl Härdle
    • 1
  • Brenda López-Cabrera
    • 1
  1. 1.Humboldt-Universität zu Berlin Ladislaus von Bortkiewicz Chair of StatisticsC.A.S.E. Centre for Applied Statistics and Economics School of Business and EconomicsBerlinGermany

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