• Stock Option Pricing

    Author(s):
    Tim Xiao (see profile)
    Date:
    2021
    Group(s):
    Business Management
    Subject(s):
    Economics
    Item Type:
    Presentation
    Tag(s):
    equity option, stock option, option pricing
    Permanent URL:
    http://dx.doi.org/10.17613/59m3-9181
    Abstract:
    Equity options, which are the most common type of equity derivatives, give an investor the right but not the obligation to buy a call or sell a put at a set strike price prior to the contract’s expiry date. Equity options are derivatives that means their value is derived from the value of an underlying equity. Investors and traders can use equity options to take a long or short position in a stock without actually buying or shorting the stock. This is advantageous because taking a position with options allows the investor/trader more leverage in that the amount of capital needed is much less than a similar outright long or short position on margin. Investors/traders can therefore profit more from a price movement in the underlying stock.
    Metadata:
    Status:
    Published
    Last Updated:
    2 years ago
    License:
    All-Rights-Granted

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