Please enable JavaScript.
Coggle requires JavaScript to display documents.
Derivatives Markets (Option Markets (Types of options (Call optipns (Give…
Derivatives Markets
Derivaties Markets
General ideas of derivatives markets
Forward markets
Futures markets
Options Markets
American-style of option
European-style option
Swap markets
Some models of derivatives markets
Derivatives exchange
A market where individuals trade standardized contracts that have been defined by the exchange
Over the counter markets
Option Markets
Types of options
Call optipns
Give buyer the right to buy a security or futures contract at the strike price
Put options
Give the buyer the right to sell a security or futures contract at the strike price
Gains and Losses
Determinants of stock option premiums
Determinants of call option premiums
Influence of the Market Price
Influence of the Stock's Volarility
Influence of the Call Option's Time to Maturity
Determinants of stock option premiums
Influence of the Market Price
Influence of the Stock's Volarility
Influence of the Put Option's Time to Maturity
Swap Markets
Interest rate swap
Use of Swap for Hedging
Use of Swaps for Speculating
Currency swap
Forwards and Futures Markets
The difference between forward and futures contracts
Futures market instruments
Futures market participants
Hedgers: Try to reduce price risk inherent
Speculators: Take risks in the futures markets
Traders: Are a special class of speculators who speculate on very shot-term changes in prices