Three Alternative Strategies · Take position in: -the option and the underlying -2 or more options of the same type This is known as spread -a mixture of calls and puts This is known as a combination

Assets Underlying Exchange-Traded Options Page 151-2 · Stocks · Foreign Currency · Stock Indices · Futures · Commodities etc

Types of Rates Treasury rates(国债利率)—regarded as risk-free rates LIBOR rates (London Interbank Offer rate)(伦敦银行同业放款利率)-generally higher than Treasury zero rates Repo rates(回购利率)—slightly higher than the Treasury rates

Futures Contracts Available on a wide range of underlyings · Exchange traded · Specifications(规定) need to be defined: -What can be delivered, Where it can be delivered,& When it can be delivered Settled(结算) daily

The Nature of Derivatives derivative(衍生产品/工具) is an instrument whose value depends on the values of other more basic underlying(标的/原 生) variables