Learn the basics of options trading, what calls and puts are, how options work, and strategies to hedge or speculate with ...

The Bjerksund-Stensland model is a key method for pricing American options. It helps investors determine optimal times for exercising options with dividends considered.

An investor would sell a put option if their outlook on the underlying was bullish and would sell a call option if their ...

Improve your trading decisions by learning how to measure option liquidity effectively using daily volume and open interest metrics.

Scholes for options to futures spot pricing. Understand pricing mechanisms for better financial decision-making.

Explore the role of embedded options in financial securities, along with their significance, impact on value, and the various types, such as callable and putable options.

Conversion arbitrage is a risk-neutral strategy in options trading that exploits pricing inefficiencies in calls and puts. Learn how it uses put-call parity to uncover profit opportunities.

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Sabrina Karl has over two decades of experience writing about savings, CDs, and other banking topics. She is currently a full-time staff writer at Investopedia and one of the country's top experts on ...

Learn what financial instruments are, explore major types and asset classes, and understand how they work in investing, trading, and portfolio construction.