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Understanding Financial Contracts

  • Description
  • Outcome
  • Certification
  • 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 free online 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 study. To successfully complete a course you must score 80% or higher in each course assessments. Upon successful completion of a course, you can choose to make your achievement formal by purchasing an official Alison Diploma, Certificate or PDF.

    Having an official Alison document is a great way to share your success. Plus it’s:

    • Ideal for including in CVs, job applications and portfolios
    • An indication of your ability to learn and achieve high results
    • An incentive to continue to empower yourself through learning
    • A tangible way of supporting the Alison mission to empower people everywhere through education.

Understanding Financial Contracts
  • Free

  • 1-2 Hours

  • Khan Academy

  • Assessment

  • Certification

  • 50 Pts

Modules List( 2 )
  • UNDERSTANDING FINANCIAL CONTRACTS
  • Module
    1
    Understanding Financial Contracts
    • Learn more about financial contracts.
    • Put and Call Options - Learning Outcomes
    • Introducing Put and Call Options
    • Leverage
    • 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
    • Lesson Summary
  • END OF COURSE ASSESSMENT
  • Module 2: Understanding Financial Contracts Assessment
    • You must score 80% or more to pass this assessment.
    • Put and Call Options Assessment
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