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1answer
23 views

Estimate a future option price given greeks and a 1$ move in underlying

Let us say underlying is at 50$, and the 50 call is at 0.50. delta=0.5, gamma =0.5, theta = .02, vega = .10. I apologize if these numbers are not realistic, I am very poor at Greeks. My question is: ...
0
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1answer
62 views

If early exercise is a bad idea, why American option is more expensive than European [duplicate]

American options are more expensive than European options because they give the buyer the right to early exercise. But in a low interest environment, early exercise is a bad idea, for most retail ...
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1answer
96 views

What does an options premium really mean?

I am taking a derivatives class at college, and I am getting slightly confused about how to understand options premiums. I have a couple of questions, specifically on this slide presented in class: ...
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1answer
228 views

Work as a contractor for my current employer rather than become a full time employee after my graduation for health insurance continued coverage

I intend to run my side business full time soon and was wondering whether it would be prudent to continue to be a contractor for my current employer rather than become a full time employee after my ...
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3answers
2k views

Do futures have premium in the price, just as options do?

Looking at Wikipedia's the pricing of futures, I wonder if entering into a futures contract requires one to pay premium just as entering into an option contract? In other words, is the premium of a ...
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2answers
96 views

How can I find stocks with highly priced option premiums?

I'm trying to learn some basic arbitrage and I'm reading about tons of different strategies, but it looks as though option premiums are often less than $0.10.
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3answers
734 views

Is the contribution towards Employment Insurance (EI) wasted if I never get fired, or are my premiums refunded?

Is the contribution towards Employment Insurance (EI) wasted if I never get fired? I ask this because most life insurances have a policy of a payout at certain intervals. Does anything like that ...