Chapter 12. Options Markets Study Notes contain 17 pages covering the following learning objectives:
* Describe the various types and uses of options; define moneyness
* Explain the payoff function and calculate the profit and loss from an options position.
* Explain the specification of exchange-traded stock option contracts, including that of nonstandard products.
* Explain how dividends and stock splits can impact the terms of a stock option.
* Describe the application of commissions, margin requirements, and exercise procedures to exchange-traded options and explain the trading characteristics of these options.
* Define and describe warrants, convertible bonds, and employee stock options.
After reviewing the notes, you will be able to apply what you learned with practice questions.
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