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2. Binomial options pricing model - Wikipedia

   en.wikipedia.org/wiki/Binomial_options_pricing_model

   In finance, the binomial options pricing model ( BOPM) provides a generalizable numerical method for the valuation of options. Essentially, the model uses a "discrete-time" ( lattice based) model of the varying price over time of the underlying financial instrument, addressing cases where the closed-form Black–Scholes formula is wanting.

3. Black–Scholes model - Wikipedia

   en.wikipedia.org/wiki/Black–Scholes_model

   In fact, the Black–Scholes formula for the price of a vanilla call option (or put option) can be interpreted by decomposing a call option into an asset-or-nothing call option minus a cash-or-nothing call option, and similarly for a put—the binary options are easier to analyze, and correspond to the two terms in the Black–Scholes formula.

4. Greeks (finance) - Wikipedia

   en.wikipedia.org/wiki/Greeks_(finance)

   This is due to put–call parity: a long call plus a short put (a call minus a put) replicates a forward, which has delta equal to 1. If the value of delta for an option is known, one can calculate the value of the delta of the option of the same strike price, underlying and maturity but opposite right by subtracting 1 from a known call delta ...

5. Call vs Put Options: Understand the Difference - AOL

   www.aol.com/finance/call-vs-put-options...

   A put option is the polar opposite of a call option. Whereas a call option gives you the right to buy 100 shares of a given stock in a given time period, a put option gives you the right to sell ...

6. Put–call parity - Wikipedia

   en.wikipedia.org/wiki/Put–call_parity

   Assumptions. Put–call parity is a static replication, and thus requires minimal assumptions, of a forward contract.In the absence of traded forward contracts, the forward contract can be replaced (indeed, itself replicated) by the ability to buy the underlying asset and finance this by borrowing for fixed term (e.g., borrowing bonds), or conversely to borrow and sell (short) the underlying ...

7. Binary option - Wikipedia

   en.wikipedia.org/wiki/Binary_option

   A binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all. [1] [2] The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The former pays some fixed amount of cash if the option expires in-the-money while the latter pays the ...