Derivatives

[IFT Team]

Please use this discussion thread to ask and discuss queries related to Derivatives topic.

[Barak]

Hello,

When will the last version of the Derivatives study notes and videos be available?

Many thanks,

Barak

[Arif Irfanullah]

By early next week. I hope your studies are coming along well.

 

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Arif Irfanullah

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Irfanullah Financial Training

M: +92 302 222 2164 | T: +92 213 580 0966 | W: irfanullah.co

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[Ilyas Abdulin]

Hello Mr. Irfanullah, I am sorry, when will the slides for the derivatives be up for use?

Thank you

On Saturday, September 28, 2013 11:43:18 AM UTC-4, Arif Irfanullah wrote:

By early next week. I hope your studies are coming along well.

 

On Sat, Sep 28, 2013 at 7:34 PM, Barak <her...@gmail.com> wrote:

Hello,

When will the last version of the Derivatives study notes and videos be available?

Many thanks,

Barak

On Sunday, June 2, 2013 10:26:47 PM UTC+3, IFT Team wrote:

Please use this discussion thread to ask and discuss queries related to Derivatives topic.

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[Arif Irfanullah]

Derivatives slides have been uploaded.

 

 

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[Ilyas Abdulin]

Thank you very much sir.

On Wednesday, October 9, 2013 12:53:21 AM UTC-4, Arif Irfanullah wrote:

Derivatives slides have been uploaded.

 

 

On Wed, Oct 9, 2013 at 9:39 AM, Ilyas Abdulin <hurric...@gmail.com> wrote:

Hello Mr. Irfanullah, I am sorry, when will the slides for the derivatives be up for use?

Thank you

On Saturday, September 28, 2013 11:43:18 AM UTC-4, Arif Irfanullah wrote:

By early next week. I hope your studies are coming along well.

 

On Sat, Sep 28, 2013 at 7:34 PM, Barak <her...@gmail.com> wrote:

Hello,

When will the last version of the Derivatives study notes and videos be available?

Many thanks,

Barak

On Sunday, June 2, 2013 10:26:47 PM UTC+3, IFT Team wrote:

Please use this discussion thread to ask and discuss queries related to Derivatives topic.

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Arif Irfanullah

CEO

Irfanullah Financial Training

M: +92 302 222 2164 | T: +92 213 580 0966 | W: irfanullah.co

Follow us on:

  

 

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[Mitesh Mohnot]

Hi,

I have a small doubt. I faced this question in the derivatives quiz.. can someone please provide me with an explanation

18. What is the most likely impact on the price of a call option if the risk-free rate increases? The 

option price will: 

A. increase

B. decrease

C. stay the same

Answer: A 

If the risk-free rate increases the call option price increases.

Thanks & Regards,

Mitesh

[Ilyas Abdulin]

This is the way I understand it

• The price of call option will increase if its probability of hitting exercise price will increase
• The rate of return on a stock = risk free rate + risk premium
• As risk free rate goes up, all else equal, the rate of return on a stock will also go up
• All else equal if return goes up, the price of the stock goes up (as it gives you better return).
• As the price of the stock went up, it came closer to the exercise price, which increases the probability of hitting exercise price. As a result the call option price increases.

This is just my logic, if I am wrong please correct me.