Financial derivatives are assets whose value is derived from the value of another asset. (maybe easier to understand: Financial derivatives are assets whose value "depends on" the value of another asset).
A relatively easy to follow introduction to derivatives by renowned finance professor Rene Stulz.
The Black-Scholes or Black-Scholes-Merton model is a mathematical model of a financial market containing certain derivative investment in...
Payoff diagrams are critical to understanding derivatives.
A fairly extensive list of financial derivatives and some of the accompanying payoffs and and risk profiles.
I look at payoff diagrams for options
A high level introduction to financial derivatives. This will be the first of about 10 videos on derivatives for my finance classes.
This is probably the option price calculator we will use in class as it is easy to use and you can see how the price of the option change...
A look at how much a call option is worth at expiration. Includes payoff diagrams. Introduction to financial derivatives
The starting point for any examination of Financial Derivatives are a few relatively simple building blocks. Understand them well and you...