金融英语第十四章答案

Chapter 14

I . Answer the following questions in English.

1.Why use options?

Answer: There are two main reasons why an investor would use options: to speculate and to hedge.

2. What are options?

Answer: An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date.

3. How many types of options?

Answer:The two types of options are calls and puts.

4.What is a call option?

Answer:A call gives the holder the right to buy an asset at a certain price within a specific period of time. Calls are similar to having a long position on a stock. Buyers of calls hope that the stock will increase substantially before the option expires.

5. What is a put option?

Answer:A put gives the holder the right to sell an asset at a certain price within a specific period of time. Puts are very similar to having a short position on a stock. Buyers of puts hope that the price of the stock will fall before the option

expires.

6. What is the function of stock option?

Answer:As a way to attract and to keep talented employees, especially management.

7. What is an option's premium?

Answer:When you buy an option, the purchase price is called the premium. If you sell, the premium is the amount you receive. The premium isn't fixed and changes constantly - so the premium you pay today is likely to be higher or lower than the premium yesterday or tomorrow. What those changing prices reflect is the give and take between what buyers are willing to pay and what sellers are willing to accept for the option. The point at which there's agreement becomes the price for that transaction, and then the process begins again.

8. What is advantage of options?

Answer:The advantage of options is that you aren't limited to making a profit only when the market goes up.

II. Fill in the each blank with an appropriate word or expression.

1.An option is a contract between a buyer and a seller that gives the buyer the right -- but not the obligation -- to buy or

to sell a particular asset (the underlying asset) at a later day at an agreed price.

2.A call gives the holder the right to b uy an asset at a certain price within a specific period of time. Calls are similar to having a long position on a stock. Buyers of calls hope that the stock will increase substantially before the option expires.

3.A put gives the holder the right to sell an asset at a certain price within a specific period of time. Puts are very similar to having a short position on a stock. Buyers of puts hope that the price of the stock will fall before the option expires.

4.People who buy options are called holders and those who sell options are called writers; furthermore, buyers are said to have long positions,and sellers are said to have short positions.

5. Many companies use stock options as a way to attract and to keep talented employees, especially management.

6. Intrinsic value is the amount in-the-money, which, for a call option, means that the price of the stock equals the strike price. Time value represents the possibility of the option

increasing in value.

III. Translate the following sentences into English. 1.期权是一份和约，在这份合约中期权出售方授予期权的买方在规定的时间内从卖方购买或卖给卖方一定的产品的权利。

An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date.

2.与其他的金融工具一样，期权可在有组织的交易所进行交易，也可以在场外进行。

And other financial instruments, options trading on organized exchanges, but also on the sidelines.

3.期权可以根据期权买方执行该期权的时间来划分。在到期日前的任一时点都可执行的期权叫美式期权，只有在到期日才可执行的期权叫欧式期权。

The distinction between American and European options is the expiration data.American options can be exercised at any time between the date of purchase and the expiration data but European options can only be exercised at the end of their life.

4.场外期权有时又叫经纪人期权。

OTC options are sometimes also known as broker option s .

5.买入看涨期权所建立的金融头寸为多头看涨头寸。．

Buy call options to establish the financial position for the long bullish positions.

6.期权的内在价值是立即执行期权后产生的期权的经济价值。

The intrinsic value of options is the options on the economic value of the immediate implementation of the options.

IV . Translate the following sentences into Chinese. 1.The option price reflects the option's intrinsic value and any additional amount over its intrinsic value.

期权的价格反映了期权的内在价值和其他超过其内在价值的任何额外的金额的价值。

2.When an option holds intrinsic value, it is said to be "in the money. " When the strike price of a call option exceeds the current asset price, the call option is said to be "out of the money", it has no intrinsic value.

当一个拥有内在价值的期权，它说成是“钱。”看涨期权的行使价，超过了目前的资产价格，看涨期权被说成是“钱”，它有没有内在价值。

3.The strike price is fixed for the life of option. All other factors being equal, the lower the strike price, the higher the price of a call option.

履约价格适用于生活中常见的期权。当所有其他因素相同条件下，履约价格较低，看涨期权的价格越高。

4.Buying calls or selling puts allows the investor to gain if the price of the underlying asset rises. Selling calls and buying puts allows the investor to gain if the price of the underlying asset falls.

如果潜在评估价格上升时购买看涨或销售看跌期权可使投资者获得收益，。如果潜在评估价格下跌，销售看涨期权和购买看跌期权，使投资者获得收益。

5.Writing a put option creates a financial position referred to as a short put position.

书面认沽期权创建了一个指向短放的位置的财务状况。

6.The clearinghouse associated with the exchange where the option trades performs the same function in the option market that is does in the futures market.

期权交易执行相同的功能，是在期货市场在期权市场与汇率相关的信息交流中心。