hkfe index option

Discussion in 'Options' started by flyingforget, Apr 15, 2008.

  1. MTE

    MTE

    If it's a mini then obviously it should have the same price since the options are quoted on a per option basis not on a per contract basis.
     
    #11     Apr 16, 2008
  2. MTE

    MTE

    In general, you can always trade in and out, however, as the other poster noted if there's no liquidity then you might have a problem getting a fair price, but as yet another person mentioned, you can do an RFQ.

    Don't confuse option's style with trading an option.
     
    #12     Apr 16, 2008
  3. Steve What is it

    thank you
     
    #13     Apr 16, 2008
  4. MTE

    MTE

    It is literally a request for quote. When you have an instrument that doesn't have any market quotes, you can request a quote for it. It's like asking for people to quote you a market on it.
    http://en.wikipedia.org/wiki/Request_for_Quotation
     
    #14     Apr 16, 2008
  5. I have observed that by doing RFQ still a quote does not appear. What do you do in those circumstances?. I have tried to fill a reasonable price and transmit the order. Sometimes it works.
     
    #15     Apr 16, 2008
  6. If I buy a put option strike price is 24200 multiple is 50

    at the end of day the price is 23800

    if I buy a future at 23800

    could I get 400 points at the expiration day?

    am I right

    thank you
     
    #16     Apr 16, 2008
  7. MTE

    MTE

    A put gives you the right to sell the underlying at the strike price. So if you buy a put with a strike price of 24200 and buy a futures contract at 23800 then exercising a put at expiration gives you a profit of 24200-23800-(premium paid for the put). However, you would only exercise the put if it is ITM, otherwise it doesn't make sense to exercise it.

    By the way, long futures+long put=long call.
     
    #17     Apr 16, 2008
  8. if the price is above 24200 then I will get more than 400 points

    if it is below 23800 then I will get 400 points

    am I correct? could I substitute the future with a call option?
     
    #18     Apr 16, 2008
  9. MTE

    MTE

    Yes, if the price is above 24200 then you will get the selling price-23800-premium.

    If it is below then you will get 400-premium paid.

    You can substitute the long futures and long put with long call.
     
    #19     Apr 16, 2008
  10. premium is 600 the multiple is 50

    does that mean 50*600?
     
    #20     Apr 16, 2008