chapter 2An Option Is an Option Is an Option...Think Again

After a trip to the local bookstore, it becomes quickly apparent that an abundance of stock option theory literature is available to those willing to invest the time. As the popularity of futures and options on futures trading has exploded, many of these writings have been renamed, repackaged, and reprinted by the authors in an attempt to transpose them into futures option theory. However, the assumption that trading options on futures and trading options on stocks can be synonymous is a gross misconception.

There is no argument that the characteristics and mechanics of the options themselves are identical. The definition of a call or put option doesn’t change relative to the ...

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