Exotic options defined.
This article outlines the concept of exotic options as well as their characteristics, different types, and differences from other types of options.
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Structured Notes: Managing a Risk Profile
Structured notes could be a good choice for investors looking for increased yield and principal protection. But many structured notes can cause the investor to lose part or all of…
Calls and Puts: Put-call Parity – Options Basics
Put-call parity allows investors to protect their position in down markets through arbitrage techniques that sometimes come up in very illiquid markets. Calls, puts, short positions and long positions in…
Volatility and Time: Factors Affecting Option Premium
It is essential that people can make informed decisions about the opportunities derivatives present as well as the potential pitfalls. Volatility and time are two important factors affecting option premium…
Interest Rate Swap: Curves and Cash Flows
An interest rate swap gives companies a way of managing their exposure to changes in interest rates. They also offer a way of securing lower interest rates. Examining An Interest…
Risk Assessment Tools for Derivatives: Risk Management and Planning
Systems designed to manage derivatives trading and examining risk are widespread and ubiquitous. This article describes the methods involved in choosing risk assessment tools for derivatives trading and management. Risk…
