O'Reilly logo

Energy Investing DeMystified : A Self-Teaching Guide by Davis Edwards

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Images

Chapter 7Options

For direct investors looking to limit their exposure to market moves or to investors looking to replicate physical investments like refineries, pipelines, or storage, options are an invaluable tool. Options are a special type of financial instrument known as a derivative. A derivative is any financial instrument whose value depends on the price of some other asset. While futures, forwards, and swaps are all examples of derivatives, another common type of derivative is an option. Options are different from futures, forwards, and commodity swap contracts because they only obligate one party (the seller). Options give the option ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required