Tag Archives: BSM model

Black-Scholes-Merton option pricing model

Posted on March 3, 2022 by Jayati WALIA

In this article, Jayati WALIA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) explains the Black-Scholes-Merton model to price options. The Black-Scholes-Merton model (or the BSM model) is the world’s most popular option pricing model. Developed in … Continue reading →

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Straddle and strangle strategy

Posted on January 12, 2022 by Akshit GUPTA

Straddle and Strangle This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the strategies of straddle and strangle based on options. Introduction In financial markets, hedging is implemented by investors to … Continue reading →

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Option Spreads

Posted on January 7, 2022 by Akshit GUPTA

Option Spreads This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the different option spreads used to hedge a position in financial markets. Introduction In financial markets, hedging is implemented by … Continue reading →

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Covered call

Posted on December 11, 2021 by Akshit GUPTA

Covered Call This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the concept of covered call used in equities option contracts. Introduction Hedging is a strategy implemented by investors to reduce … Continue reading →

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The Black Scholes Merton Model

Posted on August 19, 2021 by Akshit GUPTA

The Black-Scholes-Merton model This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the Black-Scholes-Merton Model . Introduction Options are one of the most popular derivative contracts used by investors to hedge … Continue reading →

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Option Greeks – Theta

Posted on August 19, 2021 by Akshit GUPTA

Option Greeks – Theta This article written by Akshit GUPTA (ESSEC Business School, Master in Management, 2019-2022) presents the technical subject of theta, an option Greek used in option pricing and hedging to deal with he passing of time. Introduction … Continue reading →

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Option Greeks – Vega

Posted on August 19, 2021 by Akshit GUPTA

Option Greeks – Vega This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) explains the technical subject of vega, the option Greek used in option pricing and hedging to take into account … Continue reading →

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Option Greeks – Gamma

Posted on August 8, 2021 by Akshit GUPTA

Option Greeks – Gamma This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the technical subject of gamma, an option Greek used in option hedging. Introduction Gamma is a type of … Continue reading →

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Option Greeks – Delta

Posted on August 5, 2021 by Akshit GUPTA

Option Greeks – Delta This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the technical subject of delta, an option Greek used in option pricing and hedging. Introduction Option Greeks are … Continue reading →

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