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  2. Butterfly (options) - Wikipedia

    en.wikipedia.org/wiki/Butterfly_(options)

    A long butterfly options strategy consists of the following options : Long 1 call with a strike price of (X − a) Short 2 calls with a strike price of X. Long 1 call with a strike price of (X + a) where X = the spot price (i.e. current market price of underlying) and a > 0. Using put–call parity a long butterfly can also be created as follows:

  3. Options strategy - Wikipedia

    en.wikipedia.org/wiki/Options_strategy

    Options strategy. Option strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options' variables. Call options, simply known as Calls, give the buyer a right to buy a particular stock at that option's strike price. Opposite to that are Put options, simply known as Puts ...

  4. 5 options trading strategies for beginners - AOL

    www.aol.com/finance/5-options-trading-strategies...

    1. Long call. In this option trading strategy, the trader buys a call — referred to as “going long” a call — and expects the stock price to exceed the strike price by expiration. The ...

  5. 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.

  6. What is a loan-to-value ratio? - AOL

    www.aol.com/finance/loan-value-ratio-184253472.html

    Calculator ($250,000 + $30,000) / $500,000 = 56 percent CLTV If you have a HELOC and want to apply for another loan, your lender might look at a similar formula called the home equity combined LTV ...

  7. Margrabe's formula - Wikipedia

    en.wikipedia.org/wiki/Margrabe's_formula

    Margrabe's formula. In mathematical finance, Margrabe's formula [1] is an option pricing formula applicable to an option to exchange one risky asset for another risky asset at maturity. It was derived by William Margrabe (PhD Chicago) in 1978. Margrabe's paper has been cited by over 2000 subsequent articles.

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