investment-education

The loan-to-value ratio is the first number a lender looks at when underwriting a commercial real estate loan. Before evaluating cash flow, tenant quality, or market fundamentals, the lender asks one question: how much of this property’s value is being financed? LTV determines how much equity the borrower must contribute, how much collateral cushion protects […]

Net present value (NPV) and internal rate of return (IRR) are the two most widely used capital budgeting tools. Learn the formulas, see real-world examples with Caterpillar and Amazon, and understand when NPV and IRR give conflicting signals.

A forward contract is a customized OTC agreement to buy or sell an asset at a predetermined price on a future date. Learn the forward price formula, payoff calculations, valuation during life, and how forwards compare to futures contracts.

The capitalization rate (cap rate) is an unlevered yield that expresses a commercial property’s net operating income as a percentage of its value. Learn the cap rate formula, how to interpret cap rates by property type, and when to use cap rate vs DCF valuation.

Complete guide to the collar option strategy — how to combine protective puts and covered calls for low-cost downside protection with capped upside.

Complete guide to the bear put spread — debit spread setup, payoff diagram, max profit and loss, breakeven, and when to use this bearish options strategy.

Complete guide to the bull put spread — credit spread setup, payoff diagram, max profit and loss, breakeven, and when to use this bullish options strategy.

Complete guide to the bull call spread — debit spread setup, payoff diagram, max profit and loss, breakeven, and when to use this bullish options strategy.

Complete guide to the bear call spread — credit spread setup, payoff diagram, max profit and loss, breakeven, and when to use this bearish options strategy.

Complete guide to the straddle option strategy — long and short straddle mechanics, payoff diagrams, breakeven analysis, and when to trade straddles.