All options are not created equal

摘要

A lot has been written on stock option theory. However, often the same advice and analysis has been equally applied to options on futures. The assumption that these two instruments are the same is wrong and can lead to losses. All options share certain attributes. The characteristics and most mechanics of options are universal. For example, both options on stocks and options on futures are derivatives and they both have strike prices, expiration dates and their payoff diagrams are mathematically identical.