Options And Derivatives: Advanced Investment Strategies đź’°
Navigating complex markets with options and derivatives
In the world of finance and investment, it pays to be aware of advanced tools and strategies that can help you navigate the complex terrain of financial markets.
Options and derivatives are two such tools that have gained prominence in recent years.
In this article, we will look at options and derivatives, explaining their uses, associated risks, and how they can be incorporated into your investment strategies.
Understanding Options
Let us begin with options.
An option is a financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price, known as the strike price, within a specified time period.
There are two primary types of options:
- call options
- put options
Call options:
A call option provides the holder with the right to buy an underlying asset at…
