Systematic risk, also known as market risk or non-diversifiable risk, refers to the overall risk that affects all businesses and investments in the market. This type of risk is caused by factors that are beyond the control of a specific company or individual, such as economic conditions, geopolitical events, interest rates, inflation, and market volatility. Since it affects the entire market, systematic risk cannot be eliminated or reduced through diversification. Investors typically require a higher expected return for taking on higher systematic risk.
Expiration Date
In options trading, an Expiration Date refers to the last date that an options contract is valid. On this date,
