Expansion option and Naked: Difference between pages

Revision as of 10:05, 7 October 2015

A 'naked' position in a derivatives contract is one where the holder has no other related offsetting contract, asset or liability.

The only possible profit or gain is from a favourable outturn market price.

Naked positions are, by definition, speculative (rather than hedging).

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-The valuable operational choice available to the owner of a project or of a business, to expand it.
+A 'naked' position in a derivatives contract is one where the holder has no other related offsetting contract, asset or liability.
-This is an example of a real option.
+The only possible profit or gain is from a favourable outturn market price.
-Other examples of real options include the options to contract, defer or abandon the given project or business.
+Naked positions are, by definition, speculative (rather than hedging).
 == See also ==
-* [[Real option]]
+* [[Arbitrage]]
-* [[Real options valuation]]
+* [[Derivative]]
-* [[Deferment option]]
+* [[Futures]]
-* [[Contraction option]]
+* [[Hedging]]
-* [[Termination option]]
+* [[Option]]
-* [[Abandonment option]]
+* [[Outturn]]
+* [[Speculation]]
-=== Other resources ===
-* [[Media:2015_07_July_-_Hidden_treasure.pdf| Hidden treasure, The Treasurer, 2015]]