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2. Margrabe's formula - Wikipedia

   en.wikipedia.org/wiki/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.

3. Debit spread - Wikipedia

   en.wikipedia.org/wiki/Debit_spread

   In finance, a debit spread, a.k.a. net debit spread, results when an investor simultaneously buys an option with a higher premium and sells an option with a lower premium. . The investor is said to be a net buyer and expects the premiums of the two options (the options spread) to wid

4. 5 option strategies for advanced investors - AOL

   www.aol.com/finance/5-option-strategies-advanced...

   The best brokers for options trading can help you identify attractive options trades. 2. Bear put spread. ... Setting up this trade costs a net debit of $5.25, or a total of $525, for every spread ...

5. Stock option return - Wikipedia

   en.wikipedia.org/wiki/Stock_option_return

   The calendar call spread (see calendar spread) is a bullish strategy and consists of selling a call option with a shorter expiration against a purchased call option with an expiration further out in time. The calendar call spread is basically a leveraged version of the covered call (see above), but purchasing long call options instead of ...

6. Monte Carlo methods for option pricing - Wikipedia

   en.wikipedia.org/wiki/Monte_Carlo_methods_for...

   Here the price of the option is its discounted expected value; see risk neutrality and rational pricing. The technique applied then, is (1) to generate a large number of possible, but random, price paths for the underlying (or underlyings) via simulation, and (2) to then calculate the associated exercise value (i.e. "payoff") of the option for ...

7. Credit spread (options) - Wikipedia

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

   It is designed to make a profit when the spreads between the two options narrows. Investors receive a net credit for entering the position, and want the spreads to narrow or expire for profit. In contrast, an investor would have to pay to enter a debit spread. In this context, "to narrow" means that the option sold by the trader is in the money ...