SURE WIN : Calendar and Reverse Calendar Spread

Discussion in 'Options' started by benysl, May 24, 2007.

  1. I would go with e) None of the above.

    If my answer is wrong, then their are two other logical choices a) or b). Because like delta both of these define a change in their target parameter.

    In summary, because one line of thinking has two possible answers I'd probably go with the logic that has only one answer "d)". Reinforcing "d)" might be that delta has nothing to do with theoretical price (okay it does define the change in TP).

    Gotta say it's a poorly worded question.

    Don
     
    #51     Jun 23, 2007
  2. The question, as stated by poet, was DELTA : PRICE, not DELTA : THEORETICAL PRICE.

    DELTA : PRICE implies that the price refers to the underlying price. If this is true, then the answer is (A), as coach and I believe.

    If the question is really DELTA : THEORETICAL PRICE, then that's a different question, isn't it?
     
    #52     Jun 23, 2007
  3. The ethics of cheating on the test is really the point.
     
    #53     Jun 23, 2007
  4. opt789

    opt789

    The question is delta: theoretical price, and the answer is A. I have already taken and passed the test. Delta measures the change in the theoretical price of an option in relation to a change in the underlying price. Gamma measures the change in the delta of an option in relation to a change in the underlying price.
     
    #54     Jun 23, 2007
  5. Give the man a cigar.

    That sounds like the best explanation so far.

    Don
     
    #55     Jun 23, 2007
  6. AZD brought this back up as those using TOS will be getting PM next week. I too have been locked out (pretty much) from RC's because of margin restrictions and found this very interesting...
    when comparingReg T with PM on Non-comforming Long condor

    Long 50 calls IBM APR 85@8.99
    Short 50 calls IBM Jul 90@ 6.82
    Short 50 calls IBM July 95@4.12
    Long 50 calls IBM APR 100@ 1.16

    Reg T- $214,500
    PM $ 4,638

    :eek:

    I think IV Trader needs to give a seminar on doing RC's :D

    ps before anyone jumps all over me I do know that non-conforming long condors don't equal RC's...:p however a rather vivid example of the new BP we could have
     
    #56     Jul 8, 2007
  7. way ahead of you , RR...First seminal will be at rallymore studio apartment. Hurry up , the space is limited ( literally , lol)
     
    #58     Jul 8, 2007
  8. Don't count on it. I know people like TOS, but their release date projections are as accurate as Microsoft's.
     
    #59     Jul 8, 2007
  9. well...its not something they told me in "confidence" its published on their website as of today thus I believe they are committed...oh and I don't know anyone quite like the people at TOS...been with them for 2 years and far and away the best broker we have been/dealt with.

    What is the going rate IV? any discount for us ET or fattailers? :D
     
    #60     Jul 8, 2007