The Option element simulates the acquisition and exercise of financial options (puts and calls). You specify the type of option, option properties (e.g., number of units, strike price, term), the unit value of the underlying stock, and when the option is acquired and exercised, and the element outputs the value realized upon exercise of the option.
The default icon for the Investment element looks like this:
The property dialog looks like this:
Like all GoldSim elements, you first specify an Element ID and a Description.
Below the Description field, you specify the Currency units you wish to use. GoldSim will list all of the currencies that are in its units database (by default, this is dollars, euros, pounds sterling and yen, and you can easily add any additional currencies).
The details of the Option element are discussed in the topics below. An example file which illustrates the use of Option elements (Option.gsm) can be found in the can be found in the Financial Examples folder in your GoldSim directory (accessed by selecting File | Open Example... from the main menu).
Learn more about:
Specifying the Growth of the Option's Underlying Unit Value