A split-fee or compound option where a put option is placed on a call option asset. The trader, bearish on the underlying asset, has the ability to sell it on expiration. The value of the put decreases as the asset price increases, and vice versa.
Related information about put on a call:
- Put On A Call Definition | Investopedia
The buyer of a put on a call has the right but not the obligation to sell the underlying call option on the expiration date. This type of option is used when leverage ...
- Call On A Put Definition | Investopedia
Underlying. 1. In ... Put On A Call. One of the four ... Put On A Put. One of the four . .. Synthetic Forward Contract. A position in ... Head Trader. The manager of a .
- Call on a Put Definition & Example | InvestingAnswers
A call on a put is just one type of compound option; others include the put on a put, put on a call and call on a call. Unlike regular calls, which offer the right but ...
- Chapter 7 - UH Department of Mathematics - University of Houston
call on a call, call on a put, put on a call, put on a put. Lookback options: The payoff of a lookback option depends on the minimum or maximum value of the asset ...
- Compound Option - ASC
price is above S∗. Furthermore, r is the interest rate, q the dividend rate and σ the volatility. Similarly the value of a European put on a call is. X2e−rT2 M(−a2,b2, ...
- Compound options - Department of Mathematics - The Hong Kong ...
... T2 and the last term is the expected cash payment upon exercising at T1. Other examples of compound options are call on a put, put on a call and put on a put.
- COMPOUND OPTION CALCULATOR
There are four types of compound options: a call on a call, a put on a call, a put on a put, and a call on a put. Compound options have two strikes and two ...
- Calendar Spreads – Risk Reversal
If we expect the market is correct, we might choose a direction and put on a call time spread if we are bullish or a put time spread if we are bearish on the strike ...