Tag Archives: Derivatives

Interest Rate Swaps

Posted on December 29, 2022 by Akshit GUPTA

This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the derivative contract of interest rate swaps used to hedge interest rate risk in financial markets. Introduction In financial markets, interest rate … Continue reading →

Posted in Contributors, Financial techniques | Tagged Derivatives, Interest rate swaps, Swaps | Leave a comment

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 →

Posted in Contributors, Financial techniques | Tagged Brownian motion, BSM model, Call option, Derivatives, Option pricing, Options, Put option | 3 Comments

Protective Put

Posted on January 12, 2022 by Akshit GUPTA

Protective Put This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – 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 … Continue reading →

Posted in Contributors, Financial techniques | Tagged Derivatives, Options, protective put, Put option | Leave a comment

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 →

Posted in Contributors, Culture, Financial techniques | Tagged BSM model, Derivatives, Options, Straddle, Strangle | Leave a comment

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 →

Posted in Contributors, Culture, Financial techniques | Tagged BSM model, Derivatives, Option spread, Options | Leave a comment

Understanding Options and Options Trading Strategies

Posted on December 13, 2021 by Luis RAMIREZ

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 →

Posted in Contributors, Financial techniques | Tagged Bear put spread, Bull call spread, Call option, Covered call, Derivatives, Married put, Options, Protective collar, Put option | Leave a comment

Plain Vanilla Options

Posted on August 23, 2021 by Jayati WALIA

Plain Vanilla Options In this article, Jayati WALIA (ESSEC Business School, Grande Ecole Program – 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 … Continue reading →

Posted in Contributors, Financial techniques | Tagged Call, Derivatives, Options, Put, Risk, Stock prices | 2 Comments

Derivatives Market

Posted on August 23, 2021 by Jayati WALIA

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

Posted in Contributors, Financial techniques | Tagged Derivatives, Options, OTC market, Swaps | 1 Comment

Understanding financial derivatives: options

Posted on August 2, 2021 by Alexandre VERLET

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 →

Posted in Contributors, Financial techniques | Tagged Derivatives, Options | 3 Comments

Forward Contracts

Posted on June 20, 2021 by Akshit GUPTA

Forward Contracts This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) introduces Forward contracts. Introduction Forward contracts form an essential part of the derivatives world and can be a useful tool in … Continue reading →

Posted in Contributors, Financial techniques | Tagged Derivatives, Forward, Futures | Leave a comment

Understanding financial derivatives: swaps

Posted on May 17, 2021 by Alexandre VERLET

Understanding financial derivatives: swaps In this article, Alexandre VERLET (ESSEC Business School, Grande Ecole Program – Master in Management, 2017-2021) explains why financial markets invented swaps and how they function. The origins of swaps The origins of swaps lie in … Continue reading →

Posted in Contributors, Financial techniques | Tagged Derivatives, Swaps | 1 Comment

Film analysis: Rogue Trader

Posted on November 14, 2020 by Marie POFF

Film analysis: Rogue Trader This article written by Marie POFF (ESSEC Business School, Global Bachelor of Business Administration, 2020) analyzes the Rogue trader film and explains the related financial concepts. Based on a true story, ‘Rogue Trader’ details how risky … Continue reading →

Posted in Contributors, Culture, Movies and documentaries | Tagged Derivatives, Financial leverage, Movies, Trader | Leave a comment