1. Nicole Seaman

    P1.T3.22.26. Trading strategies

    Learning outcomes: Explain the motivation to initiate a covered call or a protective put strategy. Describe principal protected notes (PPNs) and explain necessary conditions to create a PPN. Describe the use and calculate the payoffs of various spread strategies. Describe the use and explain the...
  2. Nicole Seaman

    P1.T3.21.9. Derivative payoffs

    Learning objectives: Calculate and compare the payoffs from hedging strategies involving forward contracts and options. Calculate and compare the payoffs from speculative strategies involving futures and options. Describe arbitrageurs' strategy and calculate an arbitrage payoff. Describe some of...
  3. Nicole Seaman

    P1.T3.707. Hedging versus speculation (Hull Chapter 1)

    Learning objectives: Describe the over-the-counter market, distinguish it from trading on an exchange, and evaluate its advantages and disadvantages. Differentiate between options, forwards, and futures contracts. Identify and calculate option and forward contract payoffs. Calculate and compare...