Skip to Main Content
Visual Quantitative Finance: A New Look at Option Pricing, Risk Management, and Structured Securities
book

Visual Quantitative Finance: A New Look at Option Pricing, Risk Management, and Structured Securities

by Michael Lovelady
April 2013
Beginner content levelBeginner
336 pages
6h 40m
English
Pearson
Content preview from Visual Quantitative Finance: A New Look at Option Pricing, Risk Management, and Structured Securities

12. Understanding Price Changes

Option prices are in constant movement. So are the values of structured securities that contain options. This chapter looks at the components of option value and the factors that drive changes in those values. The chapter begins with a hypothetical investment, explains the role of implied volatility in constructing an investment profile, and then tracks option prices in terms of intrinsic value, time value, and the elements of extrinsic value. The Greeks are covered in more detail in the next chapter.

Investing in XYZ

Imagine you are watching CNBC’s Mad Money. Jim Cramer just interviewed the CEO of Company XYZ. You already know the company and like what you heard in the interview. You think now is a good time ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Market Risk Analysis Volume I: Quantitative Methods in Finance

Market Risk Analysis Volume I: Quantitative Methods in Finance

Carol Alexander

Publisher Resources

ISBN: 9780132929233Purchase book