Options Jargon Buster
Options are financial contracts which give the buyer the right, but not the obligation, to buy or sell a financial instrument at a predefined price. Lee explains the context in which an options contract is executed and how it is priced.
Overview
Options are financial contracts which give the buyer of the options contract the right, but not the obligation, to buy/sell a financial instrument at a predefined price on/until a set date from the contract seller, who is obligated to sell/buy the financial instrument at said price if the option is exercised.
Key learning objectives:
Know the different types of options
Understand how options are priced and valued
Recall what Strategies, Straddles, Strangles and Collars are
Summary
Expert
Lee Bartholomew
Lee is the Global Head of Fixed Income Product R&D at Eurex, one of the largest derivatives exchanges in the world. Eurex is one of the largest companies within the Deutsche Boerse Group.
