Austin LiuinarrowmarketsAn Introduction to the Black-Scholes-Merton modelIn 1973, economists Fischer Black and Myron Scholes published the article “The Pricing of Options and Corporate Liabilities” in the Journal…Nov 13, 2021Nov 13, 2021
Austin LiuinarrowmarketsIntro to Option GreeksThis article introduces a number of variables that represent how the price of an option changes with respect to changes in some parameter…Nov 2, 2021Nov 2, 2021
Austin LiuinarrowmarketsMore Options SpreadsIn this article, we cover more complex option strategies that involve options on the same underlying asset at the same expiration, but at…Oct 1, 2021Oct 1, 2021
Austin LiuinarrowmarketsBasic Option StrategiesIn this post, we kick off a discussion of option strategies by first discussing option spreads. While this series will cover several…Sep 23, 2021Sep 23, 2021
Austin LiuinarrowmarketsOptions for SpeculationOne of the reasons options are useful for speculating on underlying asset prices in the future is that they allow traders to obtain a…Sep 18, 2021Sep 18, 2021
Austin LiuinarrowmarketsPut-call parityIn this article, we explore a relationship between the price of a European call option and a European put option that both have the same…Sep 3, 2021Sep 3, 2021
Austin LiuinarrowmarketsIntroducing Arrow MarketsIn traditional options markets, options must be sold by a writer who collects the premium from the buyer and who is responsible for paying…Nov 10, 20211Nov 10, 20211