Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

Standard Option and Power Option of Amazon.Inc and Aensitivity Analysis

Authors
Weiqian Huang1, *, , Xuanyun Shi2, *, , 2229339689@qq.com, Youyu Wang3, *, , m13515206084@163.com, Zian Zhu4, *, , 2496961838@qq.com
1Shanghai Qibao Dwight High School, 201101, Shanghai, China
2School of Economics and Math, King’s College London, WC2B 4BG, London, UK
3Shanghai Guanghua Cambridge International School, 201319, Shanghai, China
4Suzhou Industrial Park Ulink overseas education school, 215123, Suzhou, China

These authors contributed equally

*Corresponding author. Email: wqhuang_anderson@qibaodwight.org
Corresponding Authors
Weiqian Huang, Xuanyun Shi2229339689@qq.com, Youyu Wangm13515206084@163.com, Zian Zhu2496961838@qq.com
Available Online 26 March 2022.
DOI
https://doi.org/10.2991/aebmr.k.220307.050How to use a DOI?
Keywords
The standard option; The power option; BSM model; Sensitivity analysis; High profits
Abstract

Option, used by speculators in directional trades, volatility trades and combination trades is one of the most important tools in the development of finance. It can be divided into various types such as the standard option, the power option, the double option. In this article, based on the model of BSM and the data of Amazon from Yahoo finance, we use three parameters including the stock price, volatility and the strike price to do the sensitivity analysis of the standard call option and the power call option. The analysis is meaningful for the reason that people can use it to decide which one they should to buy in an effort to gain more profits. We find that the power option has a higher value and can bring more returns to consumers than the standard option because of the higher volatility and the greater price gap between the spot price and strike price compared to the standard option. This paper provides detailed comparisons and convinced reasons to support an idea that people can profit more from the power option than the standard option.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.220307.050How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Weiqian Huang
AU  - Xuanyun Shi
AU  - Youyu Wang
AU  - Zian Zhu
PY  - 2022
DA  - 2022/03/26
TI  - Standard Option and Power Option of Amazon.Inc and Aensitivity Analysis
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 316
EP  - 323
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.050
DO  - https://doi.org/10.2991/aebmr.k.220307.050
ID  - Huang2022
ER  -