Lecture no. 22 from the course: Advanced Investments
Taught by Professor Steve L. Slezak | 29 min | Categories: The Great Courses Plus Online Economics & Finance Courses
Investigate two uses for options: speculation and hedging. Follow the steps for betting on the direction of movement in the price of a security. Then see that hedging is less risky and can be compared to buying insurance. Learn that the important variables in a hedge are the hedge ratio and the option delta.