About this Lecture

This lecture instructs IMAC candidates on the characteristics and analysis of options, futures and other derivative investments including:

• the four primary roles of derivatives in investment portfolios;
• the difference between futures and forwards contracts, and options;
• the risk and return characteristics of options;
• risk management and return enhancement strategies using derivatives;
• the components of an option price including intrinsic value and time value;
• the six factors that influence an option’s price; and,
• the Black Scholes options pricing mode...