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Derivatives

Option Pricing Model

Option pricing models are mathematical models used for the purpose of valuing the options. Through this article, we attempt to explain the most prevalent and widely acknowledged option’s pricing …

Managed Futures

Managed Futures are a popular variety of alternative investments in the U.S for corporate and businesses. With a low-interest rate regime and low returns on U.S equity markets or …

Actively Managed ETFs

Actively Managed Exchange Traded Funds, or Actively Managed ETFs, are cousins of Exchange Traded Funds. They share similar characteristics and are structured in the same manner as traditional, passively …

Exchange Traded Funds

Exchange Traded Funds are investment vehicles listed on the stock exchange which provide easy access to asset classes by tracking the performance of underlying indices. They are an important …

Hedging

Hedging Meaning Hedging, in finance, is a risk management strategy. It deals with reducing or eliminating the risk of uncertainty. The aim of this strategy is to restrict the …

Strangle

Strangle is a delta neutral trading strategy which pays off only with a large movement in the underlying market price. It consists of taking positions in call and put …

Strip and Strap

Strip A strip is delta negative trading strategy. Being delta negative implies that the value of the strip position increases when the price of the underlying security goes down.

Exotic Options

An exotic option is an over the counter (OTC) option which is more complex than commonly traded plain vanilla options in terms of the option behavior with respect to …