Posted by Batool on May 24, 2011 ·
The trading days passes the value of value of delta changes with respect to strike price this term is known as option charm. In option Greek option delta, option theta, option Vega and option rho are included.
Posted by taimoor on March 2, 2011 ·
Margin Call is a situation which arises when you are running low on funds in your accounts. Your broker at this situation would get in touch and would ask you to increase your balance so that you can further pile up on stock. The situation for being on a margin call is not something to be proud of as it reflects poor money management skills. Therefore, always maintain appropriate levels of funds in your account to try and prevent the margin call.
Posted by Batool on December 28, 2009 ·
Some important terms being used in FOREX trading are precisely defined below
Posted by R. MAK. on September 1, 2009 ·
A collar is a name given to an investment strategy that uses options in order to limit the range of possible positive or negative returns on an investment in an asset to a specific range. For having this done, an investor by whom an asset is owned simultaneously buys a put option and sells (writes) a call option on the same asset. It is needed that…
Posted by R. MAK. on August 18, 2009 ·
In this article I have explained you about the lookback option with fixed strike.The option’s strike price is fixed as for the standard European options.It differs in a way that at maturity the option is not exercised at the price: the maximum difference between the optimal underlying asset price and the strike is…
Posted by R. MAK. on August 14, 2009 ·
Warrants are much similar to call options, and it will usually confer the same rights as an equity option and they can even be traded in secondary markets. Despite of all the facts, warrants have several key differences and these are given in this article…
Posted by R. MAK. on August 11, 2009 ·
In finance, a general term that is used to denote the class into which the option falls is the style or family of an option. It is usually defined by the dates on which the option may be exercised. The vast majority of options are either European or American (style) options. These options as well as others where the payoff is calculated similarly are known as “vanilla options”. Options where the payoff is calculated differently are referred to as “exotic options”. Challenging problems in valuation and hedging can…
Posted by R. MAK. on August 11, 2009 ·
It is expected by the buyer that the price may go above his chosen ‘strike price’. A premium is being paid by him that will never be refunded, and he possess the right to exercise the option at the strike price, what it means is that he can…
Posted by R. MAK. on August 10, 2009 ·
A financial contract between two parties i.e. the buyer and the seller of this type of option, is referred to as a call option. It is the option to buy shares of stock at a specified time in the future. Usually it is simply labeled a “call”. In call option, the buyer of the option has the right, but it is not the obligation to buy an agreed quantity of a particular commodity or financial instrument (the underlying instrument) from the seller of the option at…
Posted by R. MAK. on August 8, 2009 ·
In finance, an OTC-traded financial instrument that facilitates an option to buy or sell a particular bond at a certain date for a particular price is referred to as bond option. It is identical to a stock option having only one difference and that is the underlying asset is a bond. Black model is used to…
