Keywords
risk
financial risk
investment
How to Cite
Abstract
Hedging is important in financial risk management. Every investor aims to reduce the financial risks in his portfolio and achieve the maximum return. In performing this task, derivative securities have priority over all other instruments. Correct and effective use of them paves the way for rational management of financial risks. For this purpose, it is important to assess the value of derivative securities before using them. For this, the use of the Black-Scholes model which is, famous in the world of economics, serves as a good tool for preventing financial risks. This article examines the nature, history, trading and valuation methods of options, as well as the Black-Scholes model, its nature, history, advanced types, achievements and shortcomings.
References
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https://www.investors.com/research/options/options-trading-today-after-50-years-of-growth/
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