3
votes
1answer
98 views

How are stock options priced?

I was reading the wikipedia article about the Black-Scholes model, and it says this: "The key financial insight behind the equation is that one can perfectly hedge the option by buying and selling ...
3
votes
1answer
83 views

Picking a hedge option

In picking a hedge option, how important is it to buy one where the implied volatility isn't much higher than actual market volatility? Should one look at the option chain and find those options ...
14
votes
4answers
448 views

Options revisited: Gold fever

In my recent question, I asked how to operate with options. Now I would like to see whether I learned anything. At this moment, Gold is rising. Fast. As I see it, in the future, the gold price has to ...