26 lines
1.5 KiB
Plaintext
26 lines
1.5 KiB
Plaintext
295
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Notes
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Introduction
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1. Options, Futures, and Other Derivatives by John C. Hull (New Y ork:
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Prentice Hall, Eighth Edition, February 12, 2011), is considered the
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Bible of the academic study of options.
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2. Option Volatility and Pricing by Sheldon Natenberg (New Y ork:
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McGraw-Hill, Updated and Expanded Edition, August 1, 1994), is
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considered the Bible of professional option traders.
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3. The Greeks are measures of option sensitivity used by traders to man-
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age risk in portfolios of options. They are named after the Greek
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symbols used in the Black-Scholes-Merton option pricing model.
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4. “To invest successfully over a lifetime does not require a stratospheric
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IQ, unusual business insights, or inside information. What’s needed
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is a sound intellectual framework for making decisions and the abil-
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ity to keep emotions from corroding that framework. ” Preface to The
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Intelligent Investor by Benjamin Graham (New Y ork: Collins Business,
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Revised Edition, February 21, 2006).
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Chapter 1
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1. In other words, if all option contracts were specific and customized,
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every time you wanted to trade an option contract as an individual in-
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vestor, you would have to first find a counterparty to take the other side
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of the trade and then do due diligence on the counterparty to make
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sure that he or she would be able to fulfill his or her side of the bargain.
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It is hard to imagine small individual investors being very interested in
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the logistical headaches that this process would entail! |