This document summarizes the key concepts of options markets, including: - There are two main types of options: calls, which give the right to buy, and puts, which give the right to sell. Options can be European or American in terms of when they can be exercised. - The four main option positions are long call, long put, short call, and short put. The payoffs of these positions depend on whether the underlying asset price is above or below the strike price at expiration. - For call options, long positions profit when the price is above the strike price, while short positions profit when it is below. For put options, long positions profit when the price is below the strike price

1. Mechanics of Options Markets Presented by: Akhil Jain 00811403909

3. Call Option Put Option Option Buyer Buys the right to buy the underlying asset at the Strike Price Buys the right to sell the underlying asset at the Strike Price Option Seller Has the obligation to sell the underlying asset to the option holder at the Strike Price Has the obligation to buy the underlying asset from the option holder at the Strike Price

19. T Out of the money In the money At the money

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