Tag Archives: Derivatives

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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Protective Put

Protective Put This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022) presents the concept of protective put using option contracts. Introduction Hedging is a strategy implemented by investors to reduce the risk in … 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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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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Plain Vanilla Options

Plain Vanilla Options In this article, Jayati WALIA (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022) presents plain vanilla options. Introduction An option contract is a financial derivative that gives its holder the right (but not the obligation) … Continue reading

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Derivatives Market

Derivatives Market In this article, Jayati WALIA (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022) presents an overview of dervivatives market. Introduction A financial market refers to a marketplace where various kinds of financial securities such as stocks, bonds, commodities, etc. … Continue reading

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Understanding financial derivatives: options

In this article, Alexandre VERLET (ESSEC Business School, Master in Management, 2017-2021) explains why financial markets invented options and how they function. A historical perspective on options The history of options is surrounded by legends.. This story is linked to … Continue reading

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Film analysis: Rogue Trader

Film analysis: Rogue Trader This article written by Marie POFF (ESSEC Business School, Global Bachelor of Business Administration, 2020) analyzes the Rogue trader film. Based on a true story, ‘Rogue Trader’ details how risky trades made by Nick Leeson, an … Continue reading

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