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I got an assignment, i can not understand what does five matched pairs of options put and call on the stock mean?
I got an assignment, i can not understand what does five matched pairs of options put and call on the stock mean? and can you give me some hint about the assignemtn.
1. Select a stock listed on the ASX:
a. Prepare a table which contains the exercise (strike) prices, maturity dates, option prices (premiums) and
open interest, for five matched pairs of options (put and call) on the stock. The put and call options in each
matched pair should have the same maturity and the same exercise date. The maturity dates and strike prices
for the five matched pairs should be approximately representative of the range of available maturities and
strike prices. Make sure that one of your calls and one of your puts has a maturity date of at least six months,
a strike price at, or close to, the money and has an option price that is not a stale price.
b. Repeat part a above, for the option on the S&P/ASX 200 Index.
c. There are three key differences between the ASX specification for an option on a stock and the option on
the index. Prepare a table, with a column for the option on the stock and a column for the option on the index,
and three rows that show the difference in specification between the two types of option.
if select just one stock, why there are five pairs of options? what does five pairs of options mean
?