How are options traded on exchanges and in otc markets

Assignment Help Portfolio Management

Reference no: EM13923559

• How are options traded on exchanges and in OTC markets?

• How are options for stock, stock indexes, ETFs, foreign currency, and futures contracts quoted in the financial press?

• How can investors use option contracts to hedge an existing risk exposure?

• What are the three steps in establishing the fundamental no-arbitrage value of an option contract?

• What is the binomial (or two-state) option pricing model, and in what way is it an extension of the basic valuation approach?

Reference no: EM13923559

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