Factors affecting option value (for the CFA Level 1 exam)

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  • Опубликовано: 23 янв 2025

Комментарии • 10

  • @alilawati87
    @alilawati87 Месяц назад

    00:35 Value of Underlying
    08:25 Exercise Price
    12:27 Time to expiration
    23:33 Risk Free Rate
    26:37 Volatility of the Underlying
    30:16 Income or Cost related to owning the Underlying
    35:09 Summary

  • @zedleppelin6466
    @zedleppelin6466 8 месяцев назад +3

    Not in CFA but love learning about options trading thank you!

  • @vyduong1437
    @vyduong1437 3 месяца назад

    Hi, could you please explain why in the Practice Problem 9 of the Learning Module 8 of Derivatives that rising interest rate would negatively impact both the options strategy? Appreciate much for all of your hard works. Thank you

    • @letmeexplaincfa
      @letmeexplaincfa  3 месяца назад

      because a rising rate decreases the value of a put and increase the valua of a call. The question talks about a short position in the put and long position in the call.
      e

  • @mostafaemad740
    @mostafaemad740 6 месяцев назад +2

    the upper bound of put option is the exercise price or the present value of the exercise price ? i saw an question refers it is the present value and you mentioned that it is exercise price

    • @letmeexplaincfa
      @letmeexplaincfa  6 месяцев назад

      Please watch this video: ruclips.net/video/fSWehq6-UOk/видео.htmlsi=gRKEg_xlZZva4_Bv
      At 1:09:10 I discuss this specific issue and I say that I don't agree with what is in the Curriculum. I think it should be the present value of the exercise price but the Curriculum says exercise price.

  • @anshkhakhkhar1256
    @anshkhakhkhar1256 4 месяца назад

    Hello sir ,
    Impact of Increase in Time value would have a negative impact on exercise value { without considering time value component } of put option and will have a positive impact on P(t) { value considering both component time value and exercise value } assuming it’s not a deep In the money put option.?

  • @mostafaemad740
    @mostafaemad740 6 месяцев назад +2

    Perfect ♥️
    If the costs increase the put option value decrease ?