Instrutions:

CALLS:

A Call option is a right to buy. A Call can be bought (buying the right to buy) or sold (selling the right to buy). The buyer of a Call has the right (but not the obligation) of buying the underlying asset (in this case the IBEX-35 Futures) at a given price (the strike price) until a specific date (the expiration date) in exchange for a payment (the premium) paid by the seller of the Call.

PUT:

A Put option is a right to sell. A Put can be bought (buying the right to sell) o sold (selling the right to sell). The buyer of a Put has the right (but not the obligation) of selling the underlying asset (in this case the IBEX-35 Futures) at a given price (the strike price) until a specific date (the expiration date) in Exchange for a payment (the premium) paid by the seller of the Put.

PREMIUN:

This is the price of the option. They are quoted in whole number points of IBEX-35 Futures. In order to obtain their equivalent value in Ptas., it is necessary to multiply the value of the premium by 1.000.

	EXPIRATION DATE :

Is the expiry date of the option. It can be negociated in the three nearest consecutive months and in the other three months of March-June-September-December cycle. The expiration date is always on the third Friday of the expiration month.

FUTURE IBEX-35:

Is the underlying asset of the IBEX-35 Option. It is represented in whole points each one is equivalent to 1.000 Ptas.

STRIKE PRICE:

Price agreed in the option contract at which the buyer of an option may buy (in the case of a Call) or sell (in the case of a Put) the underlying asset (the IBEX-35 Futures).

VOLATILITY:

Measures the variability of the underlying asset expressed as a percentage.

INTEREST RATE:

Is the Market risk-free rate of interest for the same period of the expiration date of the option. It is expressed as a percentage.

PREMIUNS CALCULATIONS:

in order to calculate the value of the Call or Put premium enter the figures for each of the variables and click OK. This will give you the value of the premiums in points. In order to obtain the equivalent value in Ptas., the resulting premium value must be multiplied by 1.000.

GRAPH:

Once the figures have been entered as described above, you can choose the position that you wish to appear on the graph by clicking on the buttons which appear below the word GRAPH. After clicking the appropriate button, click OK. To the right on the graph the expiration position will appear on a blue line and the current position on a green line. The price of IBEX-35 Futures chosen will appear in red. The price of the underlying asset can be changed by clicking the desired value on the horizontal axis.