Financial Derivatives MBA Lecture 10 | Call & Put Options: Long Call, Long Put, Covered Call

What are options? This lecture explains the meaning of options, key terms (buyer, writer, call, put, premium, expiry, strike price), moneyness (in the money, at the money, out of the money) and four option strategies with payoff tables: long call, long put, covered call and bull spread. Financial Derivatives (KMBFM005), Lecture 10 for MBA 2nd Year. An option gives the buyer the right but not the obligation to buy (call) or sell (put) an asset at a fixed strike price on or before a set date; the seller (writer) has the obligation and receives the premium. 📚 Topics covered: • Meaning of options and the options contract (rights and obligations) • Key terms: buyer, writer, call option, put option, option premium, expiration date, strike price • Moneyness: ITM, ATM and OTM for calls (CE) and puts (PE) • Long call: strategy and payoff table • Long put: strategy and payoff table • Covered call strategy • Bull spread: strategy and payoff table ⏱️ Chapters: 0:00 Welcome 0:11 Introduction to options 9:27 Meaning of options 11:23 Options contract: rights and obligations 15:10 Key terms: buyer, writer, call and put 16:32 Key terms: premium, expiry and strike 17:58 Moneyness: ITM, ATM and OTM 25:27 Long call: strategy 27:20 Long call: payoff table 31:44 Long put: strategy 32:49 Long put: payoff table 35:58 Covered call: strategy 37:11 Bull spread: strategy 38:36 Bull spread: payoff table 🎯 Who is this for? MBA / PGDM and finance students, commerce students, and anyone learning derivatives from scratch. ◀️ Previous lecture (Lecture 9: Pricing of Futures): [paste link] ▶️ Next lecture: [paste link] 📋 Full Financial Derivatives playlist: [paste link] 📎 Slides: [credit the original source if used] 👨‍🏫 About the teacher: Vivek Singh Rana, Assistant Professor (Finance). Finance lectures for MBA and BBA students. 👍 If this lecture helped, like the video, subscribe to the channel, and share it with your classmates. Ask your doubts in the comments and I'll reply. #OptionsTrading #FinancialDerivatives #MBA