Option Pricing Pricing options is more difficult than pricing futures because it involves a...
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Interest Rates and Binary Options
Interest Rate Option An interest rate option provides a way to manage interest rate risk. If you...
Commodity and Forex Options
Commodity Options What happens if an agricultural producer would like to secure the price he will...
Equity and Index Options
Option Types Just as with futures contracts, options can be bought on a wide variety of financial...
American and European Styles
American and European Styles There are two styles of options, called American and European, though...
Why buy an Option? Selling an Option
Why Buy an Option? You can see that options provide you with a bewildering array of choices for...
Introduction: What is an Option?
Module 15 – Options Introduction Unlike any other trading derivative, options give you choices. If...
Futures Trading: Summary
Summary Futures contracts are the first of the leveraged products that we are looking at in depth...
Strategy: Spreads and Narrow-based Indices
Spreads Spreads are strategies that involve buying one contract and selling another. You’ll...
Strategy: Long and Short Futures
Long Futures So the most basic strategy with futures is to find a stock you think is moving higher...
Futures Strategies
I’ve covered a lot of ground in explaining how futures work and are traded. There are many...
Pricing Futures
When a futures contract is created, with a buyer and seller, the price of it is the amount that...