Derivatives: Options contracts - the fundamentals (S-BA0008)

Give a comprehensive review of the value and the contractual terms of an option contract, the main ways to use them (basic "strategies") and to compare them with the use of simple forward contracts. It involves many real market examples, applied on stock markets.

• Definition, terminology.
• Value of an option contract.
• Contractual terms of an option contract.
• Strategies: the main option uses.
• Options vs Forwards
• Options on stocks and stock indexes: speculative trading and hedging.