I would think the deposit as an insurance, so a put option on yourself would be a better analogy. No offence, I am just being nerdy, lol -- by 会员 ilexic (2010/3/17 13:32:25)
Haha, option expert, you are welcome! If the deposit is an insurance, it must pay me $$$ when tragedy happens(i.e. I don't get a desired job). Clearly, it won't pay me any $$$. But alternatively you can say that it's an insurance because it will pay me the NPV(MSF program).
The reason that I consider the deposit as a call is simply that it grants me the option to join (buy/undertake) this program (underlying security/project) in August (expiration date).
Btw, I don't get the "put option" part you mentioned because I don't see anything I can sell. But thank you for pointing out! I actually went to review the slides of a real option case from a year ago. |