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Options
Options are highly leveraged finance instruments that change the risk profile of a stock. Under the right circumstances, option strategies offer a high rate of return.
Step 1:
A) Calculate the absolute change in closing prices as the data set.
B) Calculate the percentage change in closing prices as the data set.
Step 2:
C) Calculate the standard deviation of the data set.
D) Calculate the variance of the data set.
Step 3:
E) Multiply it by \( \sqrt{ 260} \).
F) Multiply it by \( \sqrt{365} \).
Image credit: Google Finance
by
Calvin Lin
When would you want to early exercise an American call?
by
Calvin Lin
The stock is trading at $20. The European call on the $10 strike expiring in 1 months is actively trading at $9. What trade do you want to execute?
by
Calvin Lin
The stock is currently trading at $30. What is the maximum price of the Put on the $20 strike, expiring in 1 year?
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Calvin Lin
When would you early exercise an American put option on a stock that doesn't pay dividends?
by
Calvin Lin