Learn what a non dividend paying stock is, how it affects valuation models, option pricing, and investor returns, and why the absence of dividends matters in CFA and FRM exams.

Understand what arbitrage free means in finance, why riskless profit opportunities cannot persist, and how arbitrage-free pricing underpins derivatives and valuation models.

Learn what counterparty credit risk is, how it differs from traditional credit risk, and how collateral, netting, and central clearing reduce exposure in derivatives markets.

Binomial option pricing model explained step by step for CFA and FRM. Understand risk-neutral probability, backward induction, and American vs European option valuation.

Risk-neutral probability explained for CFA and FRM. Learn how no-arbitrage pricing works in binomial models, option valuation, and why pricing ignores real-world probabilities.

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.