Apr 12 2020

OTM Options

Posted by domain admin in News

So Paulo Stock Exchange (2008), the value of the demanded edge, when to be about sales not covered, is calculated by the CBLC using itself of a called system CM-TIMS? Clearing Members Theoretical Intermarket Margim System. The edge deposit is formed by two values: edge of prize and edge of risk. Edge of prize is the positive difference enters the quotation of the active object and the price of exercise of the vendida option, of this form, the options of purchase ITM and the options of sales OTM only have prize edge. Edge of risk is the probability of an adverse movement to the asset and is calculated being overcome as parameter the worse possible situation, in such a way the discovered investor could at any time be called to arrive in port new values in edge and will have only 24 hours to make it, duly warned to see its position eliminated. 3? Methodology of Research 3,1 Method of Research This research was produced on the basis of existing literature on the subject, as well as in the accompaniment of the So Paulo Stock Exchange and looked for to identify and to compare involved returns and risks in the operations. 3,2 Hypothesis Formulated the hypothesis, second (Malhatra, 2001:78), is an affirmation or proposal not proven of a factor or phenomenon that is of interest for the researcher. Frequently, the hypothesis is a possible reply to the research question. As the objective of this work is to inquire the importance of the options as instrument of hedge and Return in the financial market, the following hypotheses had been formulated: H1: The launching of options, as instrument of hedge, provided return and protected the capital. H2: The operacionalizao of options, as financial instrument? constraint of low and high and mainly the combination of constraints of high and low, requires little known investment, risk and return.

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