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This “Dying Warrior” is from the east pediment of the Pantheon.

The Black-Scholes-Merton model assumes that volatility remains constant over the option’s life.

For an American put option, the greater the expected volatility, the higher the option’s price.

Put-call parity holds for both American and European options.

The up factor (u) is less than 1, while the down factor (d) is always greater than 1 in a binomial model.

Exchange-traded options are always European style.

The Delta (∆) of an option represents the number of shares needed to hedge the option position.

In the one-step binomial model, the portfolio consisting of long Delta (∆) shares and short one call option is riskless at expiration.

A put option on stock ABC has a strike price of $500.  This put option at the money if the stock ABC price exceeds $500.

If put-call parity holds, there is no arbitrage opportunity.