The College of Wooster Libraries Open Works Senior Independent Study Theses 2014 Keeping Your Options Open: An Introduction to Pricing Options Ryan F. Snyder The College of Wooster,
[email protected] Follow this and additional works at: https://openworks.wooster.edu/independentstudy Part of the Other Mathematics Commons Recommended Citation Snyder, Ryan F., "Keeping Your Options Open: An Introduction to Pricing Options" (2014). Senior Independent Study Theses. Paper 5723. https://openworks.wooster.edu/independentstudy/5723 This Senior Independent Study Thesis Exemplar is brought to you by Open Works, a service of The oC llege of Wooster Libraries. It has been accepted for inclusion in Senior Independent Study Theses by an authorized administrator of Open Works. For more information, please contact
[email protected]. © Copyright 2014 Ryan F. Snyder Keeping Your Options Open: An Introduction to Pricing Options Independent Study Thesis Presented in Partial Fulfillment of the Requirements for the Degree Bachelor of Arts in the Department of Mathematics and Computer Science at The College of Wooster by Ryan Snyder The College of Wooster 2014 Advised by: Dr. Robert Wooster Abstract An option is a contract which gives the holder of the option the right, but not the obligation, to buy or sell a given security at a given price, which is called the strike price. For example, suppose Yahoo stock is currently trading at $10 per share. A person could buy an option that gives him or her the ability to purchase shares of Yahoo stock for $12 in one year. If the price of Yahoo stock is greater than $12 in one year, the holder of the option will make money.