Share Options and Option Pricing part 2

8 Comments
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Comments

  1. Avatar of igolo igolo says:
    November 20, 2012 at 1:24 am

    if there are prospects that the future share price of an investment wld fall, is it advisable to get a pull or call otion…pls xplain

  2. Avatar of cara cara says:
    November 1, 2012 at 7:34 pm

    Thank you :-) , I’m going back to the lecture.

  3. Avatar of cara cara says:
    November 1, 2012 at 2:29 pm

    Hello Sir,

    I love your lectures, really very well explained, so thank you very much.
    I have a question in relation to Delta Hedge, it assumes that only current MV of share changes, but N(d1) is constant. How could it be when we use Current MV of shares in calculations of N(d1), so it should change as well.

    • Avatar of johnmoffat johnmoffat says:
      November 1, 2012 at 4:45 pm

      @cara, That is very true, which is why delta hedges need to keep being changed (and this is stated in the lecture).
      That is the reason for all the other Greeks, but you are only expected to know what they measure and you are not expected to be able to calculations with them.

  4. Avatar of syedwaqar syedwaqar says:
    October 20, 2012 at 7:23 pm

    HELLO!!!

    Sir..kindly let me know how he is going to gani by selling call option???if share price is falling…value of call option also falling…..he would have purchased call option at higher price….and by selling it at lower price it wont be loss???

    Regards

  5. Avatar of johnmortey johnmortey says:
    September 18, 2011 at 2:21 pm

    Thank you .There is no way i would have learnt the delta hedge if i had not watched the video here

  6. Avatar of muthudivyaj muthudivyaj says:
    June 5, 2011 at 2:02 am

    Question 3 in the Dec 2010 P4 examination paper is a good question on options.

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