主题：【原创】一个增加信托基金收益的玩法 -- 倥偬飞人

当前价格$10.98

put @ strike $10/Aug07 costs $0.70 (cash gain of the seller)

Intrisic value of put: = negative

When expected unit price >= $10 at expiry date, out of the money:

Intrisic value of put = 0 or negative, so no exercising.

When expected unit price = $9.30 at expiry date, in the money:

Intrisic value of put = $0.70 (cash gain of the buyer but equal to the cost the buyer paid, so -

Return to the buyer = 0!

Cash loss to the seller by exercising: $0.70, net of cash gain $0.70 from selling the put:

Return to the seller = 0！

So $9.30 is the breaking point for both buyer and seller. If expected unit price is higher than that, the put buyer loses/seller gains; lower than that, the put buyer gains/seller loses on this option transaction.

Between $10 and $9.30, the buyer will exercise but the net return will be negative; on the contrary the seller gains.