Introduction to Financial Derivatives

The purpose of this book is to provide an introduction to some basic options strategies available to those beginning to trade stock options in Buenos Aires and index, currency and UF (Unidad de Fomento) options in Santiago, Chile. Options markets have several benefits including, among others, flexibility, leverage and limited risk. Options allow the holder (Holder) to participate in share price movements, without the need to place the necessary funds to acquire them. Options can also be used to hedge the position in a financial asset, to acquire or sell it at a pre-established price more favorable than the price quoted in the market, or, in the case of being the seller (Writer), to earn additional income. Options give us options. With options, we can adapt our position to our financial situation, market conditions and risk tolerance.This paper contains the elementary definitions of stock options. It is intended for those who are beginning their studies in the field of financial derivatives.