Return to Risk Limited website: www.RiskLimited.com. Overview of Options – An Introduction. October 2004. Options Definition.
Closer To Expiry
…rather than fixed price,
fixed volume commitments
Options Can Be Considered “Wasting Assets” That [Generally] Decline In Value Over Time. After Expiration Date, Becomes Worthless.
Options Price Simulation Based On Assumptions & Probabilities, Not A Clarivoyant Prediction…
Probability Of Outcomes…
Considered Much The Same As Black-Scholes Model, Just A Different Methodology