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  We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth. Key takeaways from this chapter Neither option buying nor selling entails mark to market; M2M is ..

  < We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth. Key takeaways from this chapter Historical Volatility is measured by the closing prices of ..

15.1 – Building blocks   Picking up from the previous chapter, we discussed relative and absolute valuation concepts. At its core, three key inputs drive the absolute valuations – The cashflow Th ..

  We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth. Key takeaways from this chapter Option sellers are always compensated for the time risk Premium ..

  We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth. Key takeaways from this chapter Financial derivatives are called Financial derivatives because o ..

14.1 – Valuations basics We are at the last stage in our Financial Modelling journey. As the last step, we have to build a valuation model, which will sit within the integrated model that we are bui ..

  We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth. Key takeaways from this chapter Option Greeks are forces that influence the premium of an option ..

  We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth. Key takeaways from this chapter The intrinsic value is equivalent to the value of money the opti ..

  We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth. Key takeaways from this chapter Buy a call option or sell a put option only when you expect the ..

  We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth. Key takeaways from this chapter Buy a Put Option when you are bearish about the underlying prosp ..