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Derivatives

Convergence

It is an essential concept in financial markets.

As we dive into the world of finance, it's important to understand the concept of convergence. This term refers to the gradual alignment of the futures contract's price with the spot or cash price of the underlying securities. In simpler terms, it's the process of closing the gap between the two prices over time. This plays a crucial role in the functioning of financial markets, making it a fundamental concept to grasp.

Covered Call Option Writing

In this particular trading approach, the investor maintains ownership of a security for a prolonged period while also selling a call option on that same security. This allow...

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Last Trading Day

In finance, the last trading day is the ultimate opportunity for a derivative contract to be either traded or settled before the delivery of the underlying asset or cash set...

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American-Style Option

This type of contract provides flexibility for the holder to take advantage of the underlying asset's price movements. Let's dive into a fascinating aspect of finance - opti...

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Long Hedge (Futures)

A long hedge refers to a strategy where an investor takes a long position on a futures contract. This is commonly utilized by hedgers who plan to purchase an asset in the fu...

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