About Salman Khan

Salman Khan is the Founder, Executive Director, and Faculty of the Khan Academy, whose mission is to provide a free world-class education to anyone, anywhere. He has worked for both hedge funds and Fortune 500 companies and holds an MBA from Harvard Business School, where he was the president of his class. He also attended MIT, where he received three degrees: a Masters in Electrical Engineering & Computer Science, a B.S. in Electrical Engineering & Computer Science, and a B.S. in Mathematics.

Central Banking

Equities

Funds & Investments

Mergers and Acquisitions

About CNBC Explains

CNBC Explains dissects the complicated economics of our world — everything from stocks and corporate balance sheets, to international trade and government policy. We are pleased to feature the work of Salman Khan, founder of the Khan Academy, as well as the reporting of CNBC anchors and editors. Each short video explains a complex topic using a unique digital interface and easy-to-understand style that simplifies even the most arcane topics.

RSS Feed

Subscribe to this RSS feed
Stay up to date with CNBC Explains

Call Options: CNBC Explains

Published: Friday, 3 Jun 2011 | 10:36 AM ET

Text Size

By: CNBC Explains

For many sophisticated investors, trading options is a routine practice that can be hugely profitable. But did you know that retail investors can also transact options contracts on the open market? It's a strategy with potential to enhance investors' portfolios and help them better navigate the market. Want to succeed at trading options? You need to understand exactly how these contracts work. Salman Khan of the Khan Academy explains call options: contracts you purchase if you think a stock will go up in the near future.

From this first video, you’ll understand: