Option Pricing Model
Option pricing models are financial models used for the purpose of valuing options. The premium paid for buying an option is the value of… Read Article
Derivative Instruments
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… Read Article
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.… Read Article
Hedging
Hedging MeaningHedging in finance is a risk management strategy. It deals with reducing or eliminating the risk of uncertainty. This strategy aims to restrict… Read Article
Strip and Strap
StripA strip is a delta negative trading strategy. Being delta negative implies that the value of the strip position increases when the price of… Read Article
Types of Exotic Options
What are Exotic Options?An exotic option is an over-the-counter (OTC) option that is more complex than commonly traded plain vanilla options in terms of… Read Article
Asset Backed Securities
Asset-backed securities (ABS) are debt instruments collateralized by various loans and obligations. These are types of derivative instruments. These obligations usually include student loans,… Read Article
Warrants
What are Warrants?A warrant is a derivative instrument that gives the warrant-holder a right to buy the underlying stock at a pre-determined strike price.… Read Article
Forward Contract
Forward ContractsA forward contract is the most elementary form of derivatives. Over here, two parties enter into an agreement either to buy or sell… Read Article
Various Avenues and Investments Alternative
Different avenues and investment alternatives include share market, debentures or bonds, money market instruments, mutual funds, life insurance, real estate, precious objects, derivatives, non-marketable… Read Article