TRADERS FULLY PRICE 50BPS ECB RATE HIKE IN MARCH FOR FIRST TIME

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  ELEMENTS OF AN OPTION PRICE An option price is composed of several elements: Intrinsic value:…

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• I-J

  IMPLIED VOLATILITY: The volatility which must be attributed to an underlying price in order to…

• CALLS

  Definition: A call option is a contract between a buyer and a seller whereby the…

• PUTS

  Definition: A put option is a contract between a buyer and a seller whereby the…

• UNDERSTANDING VOLATILITY

  The value of an option depends mainly on two things: The likelihood that the option…

• FUNDAMENTAL CONCEPTS

  OPTION: An option on an underlying asset is either the right to buy the asset…

• O-P

  OPTION VALUATION MODEL: This model that assesses option prices incorporates six factors into its pricing…