Arbitrage basics | Finance & Capital Markets | Khan Academy



Arbitrage Basics. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/put-call-parity-arbitrage-i?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/call-writer-payoff-diagram?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Options allow investors and speculators to hedge downside (or upside). It allows them to trade on a belief that prices will change a lot--just not clear about direction. It allows them to benefit in any market (with leverage) if they speculate correctly. This tutorial walks through option basics and even goes into some fairly sophisticated option mechanics. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Comments

  1. oh Khan, here I am watching your stuff four years after graduating high school ;P
  2. selling at level 5 on perspected from lvl 2
  3. Great explanation. Need that for my 7 exam.
  4. this sounds like basic business to me, no ? buying low and selling high ? although i am ignorant, explaining why im here in the first place. an example with real financial situations would be more helpful in my opinion.
  5. Thank you, that was very well explained
  6. Thanks:)
  7. Thank you for the upload. Excellently put and easy to understand :)
  8. Thanks for your help because I now have an idea of what arbitrage is all about...
  9. LoveU :-*
  10. please make a video on hedging too..it would be really helpful
  11. Hey Khan Academy.... what kind of software are using to create this video? I'd like to make videos using this same method. Thanks in advance if you reply. :-)
  12. Good basic to understand with examples.
  13. Nice and simple. Thanks!
  14. I missed very much the pointer in the last 9 or 10 videos. 
  15. This can also be a case for two different economies involved in trade.
  16. Clean and to the point, I will remember that for life!
  17. Very Helpful... 
  18. Excellent !!!!!!!!!!
  19. Thank you :)
  20. HI, Khan, what software do you use for your drawing on the video


Additional Information:

Visibility: 161156

Duration: 2m 51s

Rating: 467