The Bjerksund-Stensland model is a key method for pricing American options. It helps investors determine optimal times for exercising options with dividends considered.
A collar agreement is a financial strategy to manage risk by setting a range within which key financial variables can fluctuate, ensuring predictable outcomes.
Learn about the financial implications when an option reaches its strike price, and the concepts of moneyness, intrinsic value, and why "at the money" matters for investors.
A bear spread is an options strategy for mildly bearish investors. It aims to capitalize on moderate declines in an underlying asset's price through put or call spreads.
Discover the strategy of overwriting in options trading. Learn how selling overpriced options can generate income and ...