CFA Level I Options Video Lecture by Mr. Arif Irfanullah part 3

[@909Mino]

You're a great teacher! I'm a finance undergraduate and I haven't had a single professor who can explain Put-Call parity as well as you do!! Thank you very much!!

[@mehtayezdi]

Options was never so clear before!!! Thanks a million.....

[@RG-ne6nk]

Cfa has become so much easy because of your videos. A big thanks to you.

[@uncommonsense6022]

great video, appreciate it so much. I'm sure the other 9 thousand + other viewers do as well

[@superflatjellyfish]

You have saved me soooo many hours. Hats off to you sir :)

[@ramachandraniyer4079]

I am gaining confidence through your guidance. Synthetic option coverage is very good. Keep it up

[@mrun.g]

I want to say an unmeasurable thank-you to you :) clear, precise, simply fantastic!

[@IFT-CFA]

Nice pun. This can be fun.

[@ashishpaniya5805]

Really nice vedio to help understand the option pricing....

[@Miafay.funchallenges]

thx. its very clear..save lot of time to read books

[@IFT-CFA]

Ivy Sun Your welcome, IFT has been preparing students since 2009. Have you tried our free trial?. Theres more helpful material on our site @. Please like our Facebook page and if you are on Analyst forum please show your status as studying with IFT!. Thank You.

[@chintan1799]

still valuable after 9+ years. Big ups to IFT!

[@IFT-CFA]

Thanks IFT Support Team

[@IFT-CFA]

Good to know, but not essential in my opinion. Know the formula and how to use it is essential.

[@haoli3776]

this is a life saving video.

[@Voratatnewer]

Thank you so much sir. The video did help me understand.

[@AnjaliSingh-nq5zl]

tnx a tons..gold bless u..ur a great teacher.

[@divyaca]

excellent lecture!

[@irfanreloaded]

Sir, you are a Genius! SALUTE!!!!

[@Gucciposh19]

Jazak Allah Khiran :)

[@xiaoting1]

Thank you.

[@IFT-CFA]

You are welcome!

[@marycrawley4721]

Thank you sir

[@ManishVerma-nb3bp]

really helpful.just one doubt, why do we need to discount american call options, as we can exercise it any time before maturity.

[@khurramalimubasher6559]

Manish Verma American put/call options can be exercised at any time, so by that logic, you shouldn’t need to take into account time value on either. However, that would mean that the minimum value of an American call would actually be lower than the minimum value for a European call - which makes no sense because an American call (which can be exercised anytime) is obviously not going to be worth less than a European call (which can only be exercised at maturity). Hence, we adjust the minimum value of the American call upwards by taking time value into account. (ie using the same formula as for European calls.)

[@xiaojiaodongdong]

why America call option need to be discounted?