Understanding Financial Contracts
Learn about Put and Call options as financial contracts, and going short v. long
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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.
Module 1: Understanding Financial Contracts
Put and Call Options - Learning Outcomes
Introducing Put and Call Options
Call and Put Payoff Diagrams
Put as Insurance and Put-Call Parity
Put and Call Writer Payoff Diagrams
Arbitrage and Put-Call Parity
Option Quotes, Expiration and Price
Module 2: Understanding Financial Contracts Assessment
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.
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