In this video we use some examples of actual option quotes to better understand options as a financial derivative. Created by Sal Khan.
Unlike European option, an American options can be exercised at any point before it expires. In this video we walk through the process of exercising an American call option. Created by Sal Khan.
Unlike European option, an American options can be exercised at any point before it expires. In this video we walk through the process of exercising an American put option. Created by Sal Khan.
Arbitrage is taking advantage in price differences to earn a profit. In this video we explore arbitrage opportunities in options markets. Created by Sal Khan.
Explanation of arbitraging a futures contract. Created by Sal Khan.
Arbitraging Futures Contracts II. Created by Sal Khan.
Backwardation and the theory of Normal Backwardation. Created by Sal Khan.
Thinking about why backwardation in commodities markets is bullish. Created by Sal Khan.
When you short a stock, you are betting that the price of the stock is going to decrease. In this video, learn about the basics about shorting stocks. Created by Sal Khan.
An option, like a call option, can provide leverage because it allows a bet on a stock to be multiplied many times. Learn how call options provide leverage in this video. Created by Sal Khan.
A call payoff diagram is a way of visualizing the value of a call option at expiration based on the value of the underlying stock. Learn how to create and interpret call payoff diagrams in this video. Created by Sal Khan.
Call Writer Payoff Diagram. Created by Sal Khan.
Introduction to collateralized debt obligations (to be listen to after series on mortgage-backed securities. Created by Sal Khan.
How CDOs can give different investors different levels of risk and returns with the same underlying assets. Created by Sal Khan.
Created by Sal Khan.
Review of the difference uses of the words contango, backwardation, contango theory and theory of normal backwardation. Created by Sal Khan.
What a trader means when they say that a market is in contango. Created by Sal Khan.
Introduction to credit default swaps. Created by Sal Khan.
Systemic risks of credit default swaps. Financial weapons of mass destruction. Created by Sal Khan.
Introduction to credit default swaps and why they can be dangerous. Created by Sal Khan.