it's the option to buy (or sell) a certain amount of shares in a company on a certain date and at a certain price. Options are a type of derivative, which is a fancy way of saying their value is ...

The binomial tree would factor in multiple paths that the underlying asset's price can take ... Although the Black-Scholes formula provides an easier alternative to option pricing over decision ...

A put option gives the purchaser the right, but not the obligation, to sell the underlying asset at a predetermined price at a later date. A put buyer is essentially bearish on the market ...