Standard Option and Power Option of Amazon.Inc and Aensitivity Analysis
These authors contributed equally
- https://doi.org/10.2991/aebmr.k.220307.050How to use a DOI?
- The standard option; The power option; BSM model; Sensitivity analysis; High profits
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.
- © 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 -