New answers tagged

2 votes

Why is the VIX futures market usually in a state of contango?

I think there are two ways of looking at it, and that they are ultimately equivalent. As others have said, it's an insurance premium, as simple as that. There is only one thing which affects the price ...
1 vote

How to calculate expected value for an underlying contract and expected value for an option?

In options trading, an option position refers to the ownership of an option contract or a combination of option contracts, whereas an underlying position refers to the ownership of the asset or ...
4 votes

How do you define the NAV of a leveraged ETF?

Are you familiar with how a futures trading account works? You deposit a certain amount of cash. When you "buy" a future this does not use up any cash, nor is the future shown on your ...
  • 9,985

Top 50 recent answers are included