Options & Derivatives Trading

A bond option is a financial derivative that gives the holder the right, but not the obligation, to buy or sell a bond at a specific price on or before a certain date. Bond options are used by investors to hedge against interest rate risk, or to speculate on the direction of the bond market. … Read more

Option premium is the price of an options contract. It is the amount that the buyer pays to the seller for the right to buy or sell an underlying asset at a specified price on or before a specified date. The premium is composed of two parts: the intrinsic value and the time value. The … Read more