You're a great teacher! I'm a finance undergraduate and I haven't had a single professor who can explain Put-Call parity as well as you do!! Thank you very much!!
Ivy Sun Your welcome, IFT has been preparing students since 2009. Have you tried our free trial?. Theres more helpful material on our site @. Please like our Facebook page and if you are on Analyst forum please show your status as studying with IFT!. Thank You.
Manish Verma American put/call options can be exercised at any time, so by that logic, you shouldn’t need to take into account time value on either. However, that would mean that the minimum value of an American call would actually be lower than the minimum value for a European call - which makes no sense because an American call (which can be exercised anytime) is obviously not going to be worth less than a European call (which can only be exercised at maturity). Hence, we adjust the minimum value of the American call upwards by taking time value into account. (ie using the same formula as for European calls.)
You're a great teacher!
I'm a finance undergraduate and I haven't had a single professor who can explain Put-Call parity as well as you do!!
Thank you very much!!
Good to know, but not essential in my opinion.
Know the formula and how to use it is essential.
Jazak Allah Khiran :)
great video, appreciate it so much. I'm sure the other 9 thousand + other viewers do as well
Nice pun.
This can be fun.
I want to say an unmeasurable thank-you to you :) clear, precise, simply fantastic!
Cfa has become so much easy because of your videos. A big thanks to you.
Options was never so clear before!!! Thanks a million.....
Thank you so much sir. The video did help me understand.
You have saved me soooo many hours. Hats off to you sir :)
thx. its very clear..save lot of time to read books
Ivy Sun Your welcome, IFT has been preparing students since 2009. Have you tried our free trial?. Theres more helpful material on our site @. Please like our Facebook page and if you are on Analyst forum please show your status as studying with IFT!. Thank You.
still valuable after 9+ years. Big ups to IFT!
Thanks
IFT Support Team
really helpful.just one doubt, why do we need to discount american call options, as we can exercise it any time before maturity.
Manish Verma American put/call options can be exercised at any time, so by that logic, you shouldn’t need to take into account time value on either. However, that would mean that the minimum value of an American call would actually be lower than the minimum value for a European call - which makes no sense because an American call (which can be exercised anytime) is obviously not going to be worth less than a European call (which can only be exercised at maturity). Hence, we adjust the minimum value of the American call upwards by taking time value into account. (ie using the same formula as for European calls.)
I am gaining confidence through your guidance. Synthetic option coverage is very good. Keep it up
Really nice vedio to help understand the option pricing....
why America call option need to be discounted?
tnx a tons..gold bless u..ur a great teacher.
this is a life saving video.
Thank you.
You are welcome!
Sir, you are a Genius! SALUTE!!!!
excellent lecture!
Thank you sir