Characteristics

  • Premium - ( , ) the amount paid for the contract initially.

  • Strike Price - (exercise, ) the price at which the asset can be bought or sold.

  • Maturity Date - (exercise date, expiry date) the date when the option can be exercised or when it ceases to exist.


Strike Price

The higher the Strike price the lower the value of a call option
The higher the Strike price the higher the value of a put option
This makes sense when you remember that the call allows you to buy the underlying for the Strike amount so the lower the strike price the more this right is worth to you


  Call Option / BuyPut Option / Sell
Strike PriceUpDownDown
 DownUpUp


FT clipping


columns: closing price; strike; expiry, vol + price,






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