Some criteria of investment in stocks options Cover Image

O pewnych kryteriach inwestowania w opcje na akcje
Some criteria of investment in stocks options

Author(s): Tomasz Warowny
Subject(s): Economy, Methodology and research technology, Financial Markets
Published by: Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
Keywords: stock options; Brownian motion; geometrical Brownian motion;

Summary/Abstract: This article describes the stock options. It explains the basic concepts, such as settlement date, expiration date, strike price and premium. To describe the evolution of share prices we used the geometrical Brownian motion. We presented the several criteria for investment in options and shares and then obtained the exercises of stochastic programming. Using the properties of Brownian motion, we explained how to estimate the probability of achieving the profit of desired amount or on fixed level of risk. For each of these criteria we presented the sample calculations.

  • Issue Year: XIII/2012
  • Issue No: 3
  • Page Range: 243-252
  • Page Count: 10
  • Language: Polish