Add training workflow, datasets, and runbook
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998
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Striking price:
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as factor influencing price, 9-10
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code, 24-25
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definition, 3, 4
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fractional, 29
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standardization, 5
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Structured products, 589-640
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adjustment factor, 602-604
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cost, measuring, 605-607, 608
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break-even final index value, 604-605
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exotic options, 590
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imbedded call, computing value of when underlying
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is trading at discount, 602
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income, products designed to provide, 618-639
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covered write of call option, resembling, 619
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Creation Units, 638
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Diamonds, 638
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Exchange-Traded Funds (ETFs), 637-639 (see
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also Exchange-Traded Funds)
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HOLDRS, 639
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iShares, 638
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NASDAQ-100 tracking stock (QQQ), 638, 639
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options on ETFs, 639
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PERCS (Preferred Equity Redemption
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Cumulative Stock (PERCS), 619-637 (see also
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PERCS)
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Russell 2000 Value Fund and 2000 Growth Fund,
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638
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more appeal for investors than for traders, 589
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"riskless" ownership of stock or index, 590-618
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annual adjustment factor, 594
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bull spread, 608-612
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cash value, 593-594
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constructs, other, 607-613
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dividends, 594
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equity-linked notes, 618
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financial engineers, role of in structured products,
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590,607
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imbedded call option, cost of, 594-595
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income tax consequences, 592-593
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LEAPS options, 616-617
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list, 618
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multiple expiration dates, 613
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multiplier, 614
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option strategies involving structured products,
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613-618
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Original Issue Discount (OID), 592-593
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phantom interest, 592
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price behavior p1ior to maturity, 595-596
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SIS (Stock Index return Security), 596-601 (see
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also SIS)
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strike price, 592, 615-618
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structure, 590-593
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when underlying index drops, 617
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Index
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summary, 640
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Suitability of strategy for individual investor, 3
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Swiss franc contract for foreign currency options, 672
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Symbology, options, 23-27 (see also Options)
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Synthetic convertible bond, 441 (see also Options and
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Treasury bills)
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Synthetic long call, 271
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Synthetic long stock, 321-323
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Synthetic stock positions created by puts and calls, 321-
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328
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splitting strikes, 325-328
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bearishly oriented, 327-328
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bullishly oriented, 325-327
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protective collar, 328
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summary, 328
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synthetic long stock, 321-323
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synthetic short sale, 323-325
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leverage, 324
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"Synthetic" strategies, 118
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put, 118-121
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Tau, 859-862
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Tax considerations, put purchase, 275
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Taxes, 908-931
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assignment, 914-920
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applicable stock price (ASP), 917
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qualified covered call, 917-920, 961-962
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"too-deeply-in-the-money" definition, 916
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equity options, strategies for, 925-930
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deferring put holder's short-term gain, 928
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deferring short-term call gain, three tactics for,
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928
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difficulty of deferring gains from writing, 928-929
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spreads, unequal tax treatment on, 929-930
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exercise, 913-914
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history, 908-909
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"married" put and stock, 924
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"new" stock, delivering to avoid large long-term gain,
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920-921
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"versus purchase" notation 921
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option as capital asset, 908
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problems, special, 922-925 (see also under particular
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problem heading)
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profit strategies and tax strategies, separating, 931
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protecting long-term gain/avoiding long-term loss,
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924-925
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put assignment, 921-922
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put exercise, 921
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short sale rule, 923-925
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summary, 925, 930-931
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tax treatment, basic, 910-913
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call buyer, 910-911
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call writer, 910, 911-912
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