Analytic techniques of Options
Investorline Binomial tree pricing model Closely following the derivation of Black and Scholes, John Cox, Stephen Ross and Mark Rubinstein developed the original version of the binomial options pricing model. It…
Valuation models
The value of an option can be estimated using a variety of quantitative techniques based on the concept of risk neutral pricing and using stochastic calculus. The most basic model…
Types of Options
The Options can be classified into following types: Exchange-traded options Exchange-traded options (also called "listed options") are a class of exchange-traded derivatives. Exchange traded options have standardized contracts, and are…
Option valuation
The theoretical value of an option is evaluated according to any of several mathematical models. These models, which are developed by quantitative analysts, attempt to predict how the value of…
Option (finance)
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of…
Financial market efficiency
In the 1970s Eugene Fama defined an efficient financial market as “one in which prices always fully reflect available information”.The most common type of efficiency referred to in financial markets…
Forex Trading Versus Equities
Forex market offers several advantages over equities trading. 24-Hour Trading Forex is a true 24-hour market, which offers a major advantage over equities trading. Whether it’s 6pm or 6am, somewhere…
Investing and Stock Market 19 Trading Points
1. Plan your trades and trade your plan. 2. Keep a positive attitude, no matter how much you lose. 3. Buy the bad news and sell the good ones. 4.…
Financial market slangs
Poison pill, when a company issues more shares to prevent being bought out by another company, thereby increasing the number of outstanding shares to be bought by the hostile company…
Analysis of financial markets
Much effort has gone into the study of financial markets and how prices vary with time. Charles Dow, one of the founders of Dow Jones & Company and The Wall…