The Theory of Stock Exchange Speculation

by Arthur Crump

H. W. R.

[14] In New York, “flat.”

H. W. R.

[15] Called “straddle” in New York.

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[16] In London all options are for a fixed date; at New York they are generally made so that the option can be exercised at any time during the pending of the contract.

[17] This may be true in a certain sense, but if options are considered as an insurance feature, it is generally expected and hoped that they may not have to be exercised, and will simply answer the purpose of insurance and margin.

[18] This does not apply to the New York market.

H. W. R.

[19] In London all options are made at about the current market price, and the premium paid varies with the character of the stock and length of time, while in New York puts, calls, or spreads are generally so much above or below the market price, and the premium consequently much smaller than at London. The only exception here is the “straddle.”