Exchanging commodities is a centuries old means of investing, trading, and managing money. It is believed by some historians that variances of the modern commodity exchange have been in existence for nearly 800 years. Exchanges that deal with company stocks are a much more recent development. It has been just over 200 years since the [...]

The current price of a stock is $20. In 1 year, the price will be either $26 or $16. The annual risk-free rate is 5%. Find the price of a call option on the stock that has a strike price of $21 and that expires in 1 year.
You have to use the binomial tree model.
Let [...]

Remember the old TV show, WKRP in Cincinnati, in which the dorky Les Nessman would always give the pork bellies report?
Or how about the 1980’s movie, Trading Places, in which Eddie Murphy and Dan Akroyd corner the orange juice market? These are both examples of commodity trading in the popular media.
Commodity trading is one [...]

We will outline the best method and the best commodities to enable you to have big profit potential, so let’s get started.
If you want to make money fast DON’T diversify too much. Stick to one or a few areas only. Diversification dilutes profit potential. If you have confidence in your method don’t diversify across to [...]

Do brokerage firms require you to maintain a particular amount of assets (cash+stocks) in your account for buying call options?
Meaning if a stock is priced at $400 and you are planning on buying 10 call contract priced at $5.00, totaling to $5,000, and you only have $5,500 in your account; does your brokerage firm require [...]

There are at least a dozen major exchanges that serve as a marketplace for commodities worldwide. Each of these specialize in certain commodities, while others trade in whole different set. The following is a brief history of these exchanges:
1) Chicago Board of Trade (CBOT): This commodity exchange was established in 1848. It trades in financial [...]

There are a few reasons that commodities are separated into different types. First of all these exist to make it easier to compare prices. These differences are also there for the convenience of trading as well to make them easier to research. Yet for almost every single one of the types of commodities out there, [...]

Owning stock has only two, maybe three, possibilities. The stock goes up. Or the stock goes down. Or, as a third possibility, it does a little of both. If you buy a stock, all you want it to do is go up.
If you sell a stock short or close a position (or consider buying it [...]

Motorola has launched a budget handset – the W220, for the price-conscious customer. This no-frills, stylish black flip phone has been aesthetically designed to resemble the slim RAZR range. The Motorola W220 is made of high-grade plastic to keep the price low. However it is a stylish looking phone, with smart molded contours, just like [...]

Lets say I write a call on a stock that is about to report earnings, betting that the stock will go up $3 per share. The stock goes up $3 a share and I want to cash in my option. Do I have to wait until the expiration date of the option call?
If [...]