Understanding Financial Contracts Free Course Online | Alison

Understanding Financial Contracts

Learn about Put and Call options as financial contracts, and what it means to go short or long, with this free course.

Free Course
This free online financial contracts course will teach you how to understand a wide variety of financial contracts. In this course you will learn about the "Put" and "Call" options widely used in financial contracts, the difference between American and European options, and what it means to go short or long on an investment. Take this course today and learn how to properly understand the small print in the contracts that you sign!
  • Duration

    1.5-3 Hours
  • Assessment

  • Certification

  • Publisher

    Khan Academy





View course modules


Put options and Call options are widely used financial contracts by investors and are part of very important financial trading methods that keep the financial markets running.

In this course you will learn more about the role of put and call options as financial contracts, what the difference between American and European options are, what going short and going long on investments mean, how to balance investment risks by taking a long straddle and how to use payoff diagrams to read the outcomes of put and call options.

This course will be of great interest to finance and business professionals who would like to learn more about put and call options and how they are used as financial contracts, and to all learners who would like a greater understanding of important financial trading methods.

Start Course Now

Learning Outcomes

Having completed this course the learner will be able to: - Describe the function of call options and put options; - Explain the difference between American options and European options; - Describe what happens when an investor goes long or goes short; - Use payoff diagrams to explain call and put options; - Describe the role of arbitrage in finance.


All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire an official Certificate, which is a great way to share your achievement with the world. Your Alison Certificate is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certificates for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certificates are available to purchase through the Alison Shop. For more information on purchasing Alison Certificates, please visit our FAQs. If you decide not to purchase your Alison Certificate, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certificate pricing, please visit our Pricing Page.



    You have received a new notification

    Click here to view them all