Call Buy

Assume that, Usd/Try parity is 1.6000. An invester has the call option of 1.000.000 $ on 1.6000 for three monts later. At this point, invester who buys call option, expects increasing of Usd and pays premium to has the call option right. The invester can buy 1 million Usd/Try on 1.6000, parity price is no matter, owing to paid premium 3 months later. 3 months later parity price could be 1.7000. For being profitable call option owner can buy the parity on 1.6000. At this point, total cost is premium. Similarly, parity price could be 1.4000 3 months later. In this case, call option owner doesn’t want to use call right. Because buying from 1.4000 on market is more attractive. In both cases, total cost is premium. There is no swap and commission maturity on options.

Call Sell

Imagine that: ounce price of gold is 1550. We suppose that, an investor sells call option of 100 kg gold on 1600 up to 1 month. In this case, we can say that, the investor thinks ounce price wouldn’t come on top of 1600 within 1 mounth. If the price would be less than 1600 there wouldn’t be obligation of the investor who sold call option of gold. The investor’s received premium will be his/her income. If the price of ounce would be top of the 1600 the invester has to buy gold because of received premium. Because the invester received premium to has this obligation. The invester who bought call option wants to buy gold on 1600 because of having the right of buying and having profit according to market conditions.

Invester who buys put option, has right of sell a product or a financial instrument on a specified price and on a specified date. The invester pays premium to has this right. Invester who sells put option, sells right of sell a product or a financial instrument on a specified price and on a specified date. On the value date, put option seller has to obey the dual and buy the product or financial instrument on the value price.

Put Buy

Imagine that, Eur/Usd price is 1.4000. We suppose that, an investor buys put option of 500000 Euro on 1.4000. In this case, investor who buys put option will pay a specified premium. The invester can sell 500000 Eur/Usd on 1.4000, parity price is no matter, owing to paid premium 3 months later. 3 months later parity price could be 1.6000. For being profitable put option owner can sell the parity on 1.6000. At this point, total cost is premium. On the other hand, parity price could be 1.3000 3 months later. In this case, put option owner wants to use call right and wants to use put option on 1.4000. Invester had profit because of market is on 1.3000. . In both cases, total cost is premium. There is no swap and commission maturity on options.

Put Sell

Assume that, Usd/Try parity is 1.6000. The invester can predict that, Usd/Try will not increase top of the 1.8000 up yo 1 mounth. If the invester sells put option and has the obligation, he/she would earn premium owing to this obligation. At this point, there is no cost of invester who sell put option. If the market value is lower than 1.8000 at the end of maturity, the invester who bought put option, would want to sell the parity on 1.8000. Thus, the invester who sold put option has to buy dollar on 1.8000 because of received premium. If the market price is higher than 1.8000, the invester who bought put option wouldn’t want to use the right. For this reason, received premium will remain enterly to invester who sold put option.