Module 04 Options Market
Concept of Options
Options are financial derivatives that grant the holder the right, but not the obligation, to bu...
Development of Options Contracts
The concept of options has evolved significantly over time: Ancient Greece: The earliest recor...
Types and Styles of Options
By Underlying Asset: Equity Options: Options on individual stocks. Index Options: Options on s...
Options Basics
1. Exercise Price (Strike Price): The price at which the underlying asset can be bought or sold i...
Option Moneyness
Definitions: In-the-Money (ITM): Call Option: ( S_T > K ) Put Option: ( S_T < K ) At-the-...
Intrinsic Value and and Time Value of Options
Intrinsic Value and Time Value of an Option Intrinsic Value: The immediate gain if the option is ...