On the other hand a call cannot exceed the value of the underlying share:.

It does not directly affect the value of the underlying shares.

But these may be just the cost of buying (selling) either a future or the underlying shares.

There is an underlying share of the bank which is already traded on the market.

Oil and gold prices slumped, dragging down the underlying shares.

Even though the executives did not yet own the underlying shares, they received cash dividends on them.

B: buy a put option, exercise it and buy the underlying share.

Therefore, no investor through the exercise of either put or call options can hope to influence the market for the underlying shares.

And even if the discount did shrink, a fall in the value of the underlying shares could cancel it out.

There may be legs yet in the current rally in the underlying shares.

Puts convey the right to sell the underlying shares.

The underlying share universe includes approximately 230 equity issues.

Calls are in-the-money when the underlying share price is higher than their exercise price.

Life companies have until the end of 1991 to switch their unit trusts into the underlying shares without tax penalties.

Trading in call options, which rise in value with a higher underlying share price, was heavy on Tuesday.

Typically, short sellers buy calls to protect their positions against rallies in the underlying shares.

In both cases, the seller is writing a covered option, since the contracts are backed by the underlying shares.

A ruling along these lines could prevent the sale of the underlying shares to Schaeffler.

When the underlying shares start to perform, so should the convertible. '

If the share price of the investment trust is higher than the value of the underlying shares, they are said to trade at a premium.

It depends on the issuer, the underlying share and the level of gearing," he says.

D: The more volatile the underlying share price, the more valuable the option.

Investors can, if they wish, buy packaged units which provides them with exposure to all the underlying share classes.

Each option contract consists of the rights to buy or sell 1,000 of the underlying shares.

Traditional hybrids were usually structured in a way that leads the securities to react to the underlying share price.