«Course #: Title Module 4 Implementing multi-legged strategies Topic 1: Entering your strategy Net price Net debit/credit Executing your order Topic 2: Exiting your strategy How can I exit my ...»
• Volatility: 25%
• Risk free interest rate: 5%
• Days to expiry: 30
• The stock does not go ex-dividend during the life of the option
• American exercise style Brokerage costs are not included in the examples. It is, however, important to take brokerage costs into account when trading options.
Please note that some payoff diagrams that appear in this course are conceptual in nature, and may not be drawn exactly to scale.