Tag Archives: BSM model

Black-Scholes-Merton option pricing model

In this article, Jayati WALIA (ESSEC Business School, Grande Ecole – 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 the … Continue reading

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Straddle and strangle strategy

Straddle and Strangle This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole – 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 minimize … Continue reading

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Option Spreads

Option Spreads This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole – 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 investors … Continue reading

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Covered call

Covered Call This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole – 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 the … Continue reading

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The Black Scholes Merton Model

The Black-Scholes-Merton model This article written by Akshit GUPTA (ESSEC Business School, 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 the risks of their … Continue reading

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Option Greeks – Theta

Option Greeks – Theta This article written by Akshit GUPTA (ESSEC Business School, Master in Management, 2019-2022) presents the technical subject of theta, the option Greek used in option pricing and hedging. Introduction Theta is a type of option Greek … Continue reading

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Option Greeks – Vega

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

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Option greeks – Gamma

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

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Option Greeks – Delta

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

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