Spot price explained clearly. Learn what spot price means, how it differs from future price, its role in arbitrage, cost of carry, and derivative pricing for CFA & FRM exams.

Cost of carry explained intuitively. Learn what cost of carry means, its components, positive vs negative carry, and how it drives futures and forward pricing for CFA & FRM exams.

Future price explained clearly. Learn what future price represents, how it relates to spot price, cost of carry logic, no-arbitrage pricing, and key CFA & FRM exam concepts.

Binomial option model explained step by step. Learn how binomial trees value call and put options, risk-neutral probabilities, backward induction, and why the model is key for CFA and FRM exams.

Call option explained clearly. Learn what a call option is, how its payoff and profit work, buyer vs seller risk, early exercise logic, and key exam concepts for CFA and FRM.

Put option explained clearly. Learn what a put option is, how its payoff works, the difference between payoff and profit, buyer vs seller risk, and key exam concepts for CFA and FRM.

Why should an American call option on a non-dividend-paying stock never be exercised early? Understand the intuition, time value, dominance argument, and interest rate logic behind this key option pricing result.

Explore the workings of synthetic CDOs, their structure, and the associated credit risk exposure in the world of financial derivatives.

Discover bond futures: contracts to buy or sell bonds at set prices on specific dates. Understand their mechanics, benefits, drawbacks, and risks in trading.