CFA Level I Options Video Lecture by Mr. Arif Irfanullah part 2

[@ramachandraniyer4079]

Thank you. I admire your effective delivery . Simple and lucid explanation.

[@IFT-CFA]

@km13445n Strike price and exercise price are synonyms represented by X. S is the market price... or the market rate of interest in this case. When market rate (S) is greater than strike price (X) the option is in the money.

[@itzsandy7700]

Hi, the explanation was really good, short and straight to the point. I was looking for the third part of your video that deals with principles of option pricing and could find it. Guess the second session was uploaded twice, it would be of great help if you could upload the principles of option pricing video. Thanks

[@IFT-CFA]

You can access part 3 through my website. Go to the section which says 2011 CFA lectures.

[@km13445n]

Sir on 4:33 isnt the call option in the money if the strike price is greater than excercise price. basically S>X. Therefore, if the interest rate in the market was 6% meaning S>X the holder of the call option on the interest rate will be in the money and borrow the funds at the X=5%. Please correct me if I am wrong

[@Geotubest]

At around 4:24 I believe it is incorrect to say 'the option is IN THE MONEY if the strike price (or strike rate) is GREATER than the market rate of interest." In other words, "X>S" on the drawing board denoting as being 'in the money' is wrong. It should be just the opposite. An interest rate option is in the money if the market interest rate is greater than the strike price (i.e strike rate) because, effectively, the holder of the option can borrow at a less than market rate.

[@IFT-CFA]

007, long is not similar to call and short is not similar to put. listen to options lectures again from the beginning understand the distinction.

[@Nspalak]

Hello sir. I believe the third part of this video dealing with amaerican and European options pricing is missing. Please it would be really helpful If you would upload that video. Thank you.

[@hardikshah9902]

sx is in the money in interest rate call option How?

[@rahulpurswani]

@km13445n hey brother wat u saying is right... if the interest rate(S) > strike rate(X) call option is in the money. cause he has a right to borrow at less interest rate.