Options – Call option

Short description

Setup a call option position in one contract and see what happens to its price when the underlying futures contract price changes.

Capacity

You act in the role of an option trader.
More specifically, you act in the capacity of aggressor.

Task

Take a call option position (by transacting a call option). First buy one unit to setup a long call option position of one contract. Then, analyse the value of the call option position, while simultaneoulsy following the price development of the option’s underlying futures contract (both call option and futures contract are reflected in two separate price charts). Explore their price relationship.

Objective

The aim of this simulation is to learn about option valuation. You can master the impact of a price change of the underlying asset (futures contract) for the option value. Make sure you compare the option value to the value of the underlying asset.

 

Our Labels

Entrima and Market Abuse Centre (MAC) are the two labels we operate to provide learning services for professionals in the commodity & energy markets.
 
 


Content & Context

Entrima’s mission is to transfer knowledge regarding the business, controls & operations of parties in (or relating to) the wholesale markets.

www.entrima.org


Conduct & Culture

MAC’s mission is to facilitate the prevention & detection of misconduct and to foster proper behaviour in organisations. This is achieved via training, periodic updates and increased awareness.

www.marketabusecentre.com