Learn how the stock replacement strategy lets investors use call options to match stock gains with less capital, offering flexibility in risk management.

An option price is the value of an option contract. The option price is determined by the extrinsic and intrinsic value of the option contract. Options are contracts that allow investors to buy or ...

Financial word of the day: Black-Scholes model — The Black-Scholes model remains the 2026 gold standard for pricing trillions in derivatives. It uses five key data points: stock price, strike, time, ...

Options contracts give the right to buy or sell stock at set prices, potentially profitable. There are call (buy) and put (sell) options; employee stock options are typically call options. Options' ...