Explain the basic characteristics of options markets and individual options contracts. • Analyze how investors can make (or lose) money from put and call options by creating exposure and hedging it with those tools (quantify). • Identify techniques that can be used for hedging. • Describe the motivations of investors for utilizing options. • Design a use of options combination strategies, such as spreads and straddles, to address a hedging exposure you develop. Select the best solution you think would address the exposure. • Explain the function of futures contracts for speculators.
