Hot answers tagged

3

I doubt that there are millions of derivatives tied to an index fund. Perhaps tens of thousands in something like the SPY. Even so, that's a separate issue. All options must update as their underlying price changes. The market and its derivatives is an intertwined being. Market makers and professional traders are constantly evaluating derivative prices ...


1

The market makers in various options operate their own or third-pary pricing and valuation systems which will take the price of the underlying into account. These valuation models will run on server farms in data-centers with good connectivity to the exchange(s) on which the market maker operates. If the price of the stock moves, then so will the price of ...


Only top voted, non community-wiki answers of a minimum length are eligible