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Finance: Derivatives


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Finance: What's the Difference Between an American and European Style Option?
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What is the difference between an American and European style option? The main difference between American and European options is when they can be...

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Finance: What is Intrinsic Value (of An Option and of an Asset)?
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The intrinsic value of an option is the share price of a stock minus its strike price - i.e. the "in the money" amount.

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Finance: What is a naked option/position?
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A naked option isn't as risqueé as it sounds...it's just an option you sell without having enough of the underlying security to cover your butt if...

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Finance: What are Theta and Theta Decay?
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Theta refers to either the amount of time left on a contract, or the sorority girl asking if you want to come to her mixer. The answer will always...