Consumer Prices Index and Straddle: Difference between pages

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''Inflation measures.''
''Options speculation''
A composite speculative deal in two options which results in profits from large changes in the underlying asset price, either up or down.
The straddle’s profit/loss profile is ‘V’ shaped.


(CPI).
It is also sometimes known as a ''bottom straddle'' or a ''long straddle''.


1. ''UK.''
A long straddle is constructed by simultaneously buying a call option and a put option with identical strike prices.


The Consumer Prices Index is a measure of inflation in the UK, calculated as the change from month to month in the prices of a standard basket of consumer goods and services.  
The opposite composite transaction - which is a mirror image of the ‘V’ shaped long straddle - is known as a ''top straddle'' or a ''short straddle''. This is the position taken by the seller of a conventional long straddle.


The UK's official measure of inflation index is the Consumer Prices Index including owner occupier's housing costs (CPIH). The CPIH is comprised of the CPI plus a measure of the costs associated with owner occupiers' housing (OOH).
== See also ==
* [[Option]]
* [[Speculation]]


The UK CPI replaced the Retail Prices Index (RPI).
The UK CPI was previously known as the Harmonised Index of Consumer Prices (HICP).
2. ''United States.''
The Consumer Price Index is one of the leading inflation indices used in the US.
Its uses include the limited indexation of certain US pensions.
3.
More generally, a consumer prices index is a statistical estimate constructed using the prices of a defined sample of representative consumer items, such as goods and services, whose prices are collected periodically. 
The index is compared to a base period to give an estimate of periodic inflation rates.
==See also==
* [[Cost of living adjustment]]
* [[CPIH]]
* [[Harmonised index of consumer prices]]
* [[Index numbers]]
* [[Inflation]]
* [[Inflation target]]
* [[Office for National Statistics]]  (ONS)
* [[Output price index]]
* [[Personal Consumption Expenditures price index]]  (PCE)
* [[Producer Price Index]]
* [[Retail Prices Index]]
* [[Services Producer Price Index]]
* [[Treasury inflation-indexed securities]]
==External link==
*[https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/previousReleases UK consumer price inflation - Office for National Statistics]
[[Category:Knowledge_and_information_management]]
[[Category:The_business_context]]

Revision as of 14:20, 23 October 2012

Options speculation. A composite speculative deal in two options which results in profits from large changes in the underlying asset price, either up or down. The straddle’s profit/loss profile is ‘V’ shaped.

It is also sometimes known as a bottom straddle or a long straddle.

A long straddle is constructed by simultaneously buying a call option and a put option with identical strike prices.

The opposite composite transaction - which is a mirror image of the ‘V’ shaped long straddle - is known as a top straddle or a short straddle. This is the position taken by the seller of a conventional long straddle.

See also