Options Markets (FRM Part 1 2023 - Book 3 - Chapter 12)

For FRM (Part I & Part II) video lessons, study notes, question banks, mock exams, and formula sheets covering all chapters of the FRM syllabus, click on the following link: analystprep.co...
AnalystPrep is a GARP-Approved Exam Preparation Provider for FRM Exams
After completing this reading, you should be able to:
- Describe the various types and uses of options; define moneyness.
- Explain the payoff function and calculate the profit and loss from an options position.
- Explain the specification of exchange-traded stock option contracts, including that of nonstandard products.
- Explain how dividends and stock splits can impact the terms of a stock option.
- Describe the application of commissions, margin requirements, and exercise procedures to exchange-traded options, and explain the trading characteristics of these options.
- Define and describe warrants, convertible bonds, and employee stock options.

[@cityofjoy8830]

Thx sir

[@analystprep]

Glad you like it! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a Google review using this link: g.page/r/CQIlM78xSg01EB0/review

[@abdullahnarejo1259]

How do a Commision adjusted in stock options pricing and valuation?