Tag Archives: Call option

Implied Volatility

In this article, Jayati WALIA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) explains how implied volatility is computed from option market prices and a option pricing model. Introduction Volatility is a measure of fluctuations observed in … Continue reading

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Black-Scholes-Merton option pricing model

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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Understanding Options and Options Trading Strategies

Understanding Options and Options Trading Strategies In this article, Luis RAMIREZ (ESSEC Business School, Global BBA, 2019-2023) discusses the fundamentals behind options trading. Financial derivatives In order to understand and grasp the concept of options, knowledge of what is a … Continue reading

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Covered call

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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Hedging strategies – Equities

Hedging Strategies – Equities This article written by Akshit GUPTA (ESSEC Business School, Master in Management, 2019-2022) presents the different hedging strategies based on option contracts. Introduction Hedging is a risk mitigation strategy used by investors reduce the risk in … Continue reading

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Types of exercise for option contracts

Types of exercise for option contracts This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the different types of exercise for option contracts. Introduction Exercising a call option contract means the … Continue reading

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Options

Options This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents an introduction to Options. Introduction Options is a type of derivative which gives the buyer of the option contract the right, … Continue reading

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History of Options Markets

History of the options markets This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents an introduction to the History of the Options markets. Introduction Options are a type of derivative contracts … Continue reading

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