Options Foundations

Calls, puts, payoff diagrams, put-call parity, option bounds, spreads, straddles and binomial trees.

What this track covers

1. 01
   Call & put payoffs
   Two hockey-sticks: long call, long put, payoff, profit, break-even.
   10 min
2. 02
   Moneyness, premium & time value
   ITM, ATM, OTM, and how intrinsic value plus time value add to the premium.
   10 min
3. 03
   Put-call parity
   Why a call, a put, a bond and the underlying must agree.
   12 min
4. 04
   Option bounds
   Upper and lower no-arbitrage rails.
   11 min
5. 05
   Bull & bear spreads
   Cap both sides: verticals, credit spreads and the butterfly.
   12 min
6. 06
   Straddles & strangles
   Betting on movement, not direction, and the risk of selling it.
   11 min
7. 07
   Binomial tree
   Discrete-time pricing, derived from no-arbitrage.
   13 min
8. Quiz
   Quiz · Options check
   10 questions on payoffs, moneyness, parity, bounds, spreads and trees.
   8 min

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