Options

Call Option;
1)
Call Option‫ لو انا اشتريت الـ‬Buyer ‫هنا حالة‬

Gives the option purchaser (buyer) the right but not the obligation to
buy a security at prespecified price (‫> )سعر ثابت اتفقوا علي وقت توقيع العقد‬
Strike Price (Exercise Price)
Purchaser (buyer) of the Call Option must pay the writer (seller) a call
premium (#) (up-front fee paid immediately)

Call Option

S > X
(Underlying Price) Greater (Strike Price) In the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S < X
(Underlying Price) Less (Strike Price) Out the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S = X
(Underlying Price) Equal (Strike Price) At the
(Stock Price) to (Exercise Price) money
(Market Price) (Agreed Price)
1) In the money:
The buyer exercise the option and profit,
How to calculate profit?
S – X -  = Profit$

2)Out the money:

The buyer will not exercise the option and lose,
The buyer’s loss is limited to the Call premium (#)
 2)
Call Option‫ لو انا ببيع الـ‬Writer (seller) ‫هنا حالة‬

Call Option

S > X
(Underlying Price) Greater (Strike Price) Out the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S < X
(Underlying Price) Less (Strike Price) In the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S = X
(Underlying Price) Equal (Strike Price) At the
(Stock Price) to (Exercise Price) money
(Market Price) (Agreed Price)

1)In the money:

The buyer will not exercise the option, so the writer’s
(seller) Profit is limited to the Call Premium (#)

2)Out the money:

The buyer will exercise the option, so the writer’s (seller)
loss is unlimited, How to calculate loss?
# - S + X = Loss$
Put Options;

1)
Put Option‫ لو انا اشتريت الـ‬Buyer ‫هنا حالة‬

Gives the option purchaser (buyer) the right but not the
obligation to sell a security at prespecified price ( ‫سعر‬
‫ > )ثابت اتفقوا علي وقت توقيع العقد‬Strike Price (Exercise Price)
Purchaser (buyer) of the Put Option must pay the writer
(seller) a put premium (#) (up-front fee paid
immediately)

Put Option

S > X
(Underlying Price) Greater (Strike Price) Out the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S < X
(Underlying Price) Less (Strike Price) In the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S = X
(Underlying Price) Equal (Strike Price) At the
(Stock Price) to (Exercise Price) money
(Market Price) (Agreed Price)
 1) In the money:
The buyer will exercise the option, and make profit,
-S-#+X= Profit$

2) Out the money:

The buyer will not exercise the option, so the loss is limited to
the Put Premium (#)
 2)
Put Option‫ لو انا ببيع الـ‬Writer (seller) ‫هنا حالة‬

Call Option

S > X
(Underlying Price) Greater (Strike Price) In the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S < X
(Underlying Price) Less (Strike Price) Out the
(Stock Price) than (Exercise Price) money
(Market Price) (Agreed Price)
S = X
(Underlying Price) Equal (Strike Price) At the
(Stock Price) to (Exercise Price) money
(Market Price) (Agreed Price)

1)In the money:

The buyer will not exercise the option, so the writer’s
(seller) Profit is limited to the Put Premium (#)

2)Out the money:

The buyer will exercise the option, so the writer’s (seller)
loss is calculated:
# - X + S= loss$