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Understanding Financial Contracts

Law
Free Course

Learn about Put and Call options as financial contracts, and going short v. long

  • Duration

    1-2 Hours
  • Assessment

    Yes
  • Certification

    Yes
  • Publisher

    Khan Academy
Description Outcome Certification 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.

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 official Certification, which is a great way to share your achievement with the world. Your Alison Certification is:

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An indication of your commitment to continuously learn, upskill and achieve high results
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