Tagged Questions
5
votes
0answers
212 views
option chain data visualization, sunburst
I think option chains are not represented in the best way. With more and more options products coming out and trading on the various exchanges, I see vendors struggling to keep up with a good way to ...
2
votes
1answer
145 views
Greeks and Option Premium
If a linear sum of options is constructed such that the premium payout is zero, then does it mean that resultant greeks of the cumulated options positions will be nearly zero. For simplicity, lets ...
2
votes
3answers
276 views
Basic question about Black Scholes derivation
In the derivation of the Black Scholes equation, the value of the portfolio at time $t$ is given by
$$P_t = -D_t + \frac{{\partial D_t}}{{\partial S_t}}S_t $$
where $P_t$ is the value of the ...
0
votes
2answers
196 views
What is the Benefit of holding a short option?
i am new to corporate finance and ask myself why a investor is interested in being short on a Option? The only he can win is a premium but he can loose much more. I understand with being a short I can ...
2
votes
1answer
387 views
What exactly is the annualized forward premium?
A forward contract has a premium of $ 0$ because it is an obligation to buy or sell something in the future (hence there is more risk). Call and put options, on the other hand, have premiums of $C$ ...
5
votes
2answers
425 views
What are the major models for energy derivatives, particularly electricity derivatives?
Aside from Black-Scholes with crazy skews, what major models are used for energy derivatives? I'm thinking particularly of electricity derivatives, but I'm also interested in natural gas and other ...
