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Derivatives Assignment Help

Derivatives Assignment & Homework Help An instrument whose cost is derived from one or more underlying instruments or assets or is dependent upon another. The derivative is simply an agreement between a couple of parties. Its worth is set by changes in the...

Pricing Stock Options

Pricing Stock Options Much of what was discussed about index options also applies to stock options. The factors that affect option prices are listed below. The Stock Price The payoff from a call option will be the amount by which the stock prices exceeds the strike...

Pricing Options

Pricing Options An option buyer has the right but not the obligation to exercise on the seller. The worst that can happen to a buyer is the loss of the premium paid by him. His downside is limited to this premium, but his upside is potentially unlimited. This...

Options Payoffs

Options Payoffs A pay off for derivative contracts is the likely profit loss that would accrue to the market participate with change in the price of the underlying asset. The nationality characteristic of option is a non linear payoff for options. In simple words, it...

Futures and Options

Futures and Options Options are different from futures in several respects. At a practical level, the option buyer pays of the option in full at the time it is purchased. After this, he only has an upside. There is possibility of the options position generating any...