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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 A moderate move would mean you expect a movement in the stock/in ..

  We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth. There are no key takeaways in this chapter 🙂   ..

16.1 – Market risk premium In the previous chapter, we discussed that the equity holders expect a higher return than the debt holders. The higher return (rate) is what we will use to discount the fr ..

  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 ..