Elvis Picardo

The prisoner’s dilemma is a paradox conceptualized by Merrill Flood and Melvin Dresher at the Rand Corporation in 1950. It was later formalized and named by Canadian mathematician Albert William Tucker. The prisoner’s dilemma basically provides a framework for understanding […]

So you’ve racked up thousands of dollars in paper profits on your favorite stock simulator and are now ready to take the big step from virtual trading to the real thing? Lest you think that making the transition will be an

P/E Ratio vs. EPS vs. Earnings Yield: An Overview The price-to-earnings (P/E) ratio, earnings per share (EPS), and earnings yield are all financial metrics used to evaluate a company. The P/E ratio can reveal if a stock is overvalued or

Gross domestic product (GDP) is defined as the total value of goods and services produced within a country’s borders in a specific period. This can be monthly, quarterly, or annually. GDP is one of the most widely used measures of

Most investors evaluate mutual funds using the principles of fundamental rather than technical analysis. Mutual funds tend to be long-term, buy-and-hold investments, and technical analysis is better suited to shorter-term trading. That said, investors should not overlook the value of some

Spin-Off vs. Split-Off vs. Carve-Out: an Overview A spin-off, split-off, and carve-out are different methods a company can use to divest certain assets, a division, or a subsidiary. While the choice of a specific method by the parent company depends on a

Futures and options are both derivative instruments, which means they derive their value from an underlying asset or instrument. Both futures and options have their own advantages and disadvantages. One of the advantages of options is obvious. An option contract provides

A bull put spread is a variation of the popular put writing strategy, in which an options investor writes a put on a stock to collect premium income and perhaps buy the stock at a bargain price. A major risk

The national unemployment rate is defined as the percentage of unemployed workers in the total labor force. It is widely recognized as a key indicator of the performance of a country’s labor market. As a closely watched economic indicator, the

Seven factors determine the price of an option. Six have known values, and there is no ambiguity about their effects in an option pricing model. The seventh variable, volatility, is only an estimate – and yet, it is the most