Derivatives: what these financial instruments are and how they work
Derivative financial instruments represent a complex and advanced category of investments whose value is based on an underlying asset, also […]
Underlying: what it is and why it is critical for financial derivatives
The term underlying refers to the variable or asset on which the price of a derivative instrument depends. In essence,
Put options: meaning, use and characteristics
A put option is a futures contract that gives the buyer the right, but not the obligation, to sell an
Call option: meaning, characteristics and use
A call option is a futures contract that gives the buyer the right to buy an underlying asset, such as
Options: definition, types, and use
Options are derivative instruments that give the buyer the right, but not the obligation, to buy or sell an underlying
European options: characteristics, operation and limitations
An European option is a type of financial contract that allows the holder to exercise its right only on a
American options: characteristics and when it pays to exercise them
The American option represents a type of financial contract that offers the holder the opportunity to exercise his or her
Credit default option (CDO): protection against credit deterioration
A credit default option (CDO) is a financial risk management instrument designed to provide a hedge against deterioration in the