engleski

Option leverage

Options are the most complex financial derivatives which open numerous possibilities to investors. One of those possibilities is achieving option leverage effect. By option leverage we mean the multiplication of profit from an option strategy with respect to changes in market price. In this paper we are analysing option leverage in terms an elasticity coefficient of profit functions for option strategies long call and short put and comparing the values of those coefficients to elasticity of profit from long postion in asset. It should be helpful for investors in decision making.

options; leverage; elasticity; derivatives

Citira se u: ISI (Index to Scientific & Technological Proceedings on CD-Rom and ISI/ISTP&B online database), Current Mathematical Publications, mathematical Revies, Mathsci, Zentralblatt für Mathematik/Mathematics Abstracts, Math on STN International, Compact Math, INSPEC, Journal of Economic Literature