Learn the basics of the Black-Scholes pricing formula below. This is a prime example of academic research having a huge impact in financial markets. With the advent of the Black & Scholes derivative pricing formula, derivative trading instruments and volume exploded to levels no one would have ever imagined. If there is one financial math formula you should attempt to understand, this is the one!
Black-Scholes Option Pricing Formula
Something a little more basic? Okay, but don't be intimidated by what's above, this was a major development in finance worth understanding. So look and learn at some of the basic mechanics of Stock Options and the power (leverage) they yield for you the investor.