Actuarial Science derivatives

Actuarial Science derivatives
Q&A


Long forward description - answer-agree to buy an asset in future at set price



short forward description - answer-agree to sell an asset in future at set price



buy a call description - answer-buy the right to buy an asset at a fixed price



write a call description - answer-obliged to possibly sell asset at fixed price



negative slope - answer-you are bearish



positive slope - answer-you are bullish



buy a put description - answer-buy the right to sell an asset at a fixed price



write a put description - answer-obliged to possibly buy asset at fixed price



(derivative and outlook) long forward - answer-long, bullish



(derivative and outlook) short forward - answer-short, bearish



(derivative and outlook) buy a call - answer-long, bullish



(derivative and outlook) write a call - answer-short, bearish



(derivative and outlook) buy a put - answer-long, bearish

, (derivative and outlook) write a put - answer-short, bullish



call bull spread - answer-buy call (k1) and sell a call (k2)



put bull spread - answer-buy a put (k1) and sell a put (k2)



call bear spread - answer-sell a call (k1) and buy a call (k2)



put bear spread - answer-sell a put (k1) and buy a put (k2)



call ratio spread - answer-buy m calls at (k1) and sell n call at (k2)



put ratio spread - answer-sell m puts at (k1) and buy n puts with (k2)



floor - answer-long asset, long put



cap - answer-short asset, long call



bear spread - answer-sell low and buy high



bull spread - answer-buy low and sell high



covered call - answer-long asset, short call



covered put - answer-short asset, short put



synthetic long forward - answer-short put, long call