Factors That Impact an Option's Value
Various mathematical techniques can be used to determine the appropriate price of an option given a set of prevailing market factors. This module begins with a discussion of put-call parity, which will show you the relationship between the prices of puts and calls. Then, it will look at a simple option-pricing model based on the concept of expected values. Finally, it will introduce single- and multi-period binomial lattice models.
This course replicates the content from module 4 of the course Options.
CPE Credits: 1
|Prerequisites||This course has no prerequisites.|
|Advance Preparation||No advance preparation required.|
|Recent Revision Date||May 21, 2015|
|Instructional Delivery Method||QAS Self Study|
|Field of Study||Specialized Knowledge and Applications|
Duration : 1 hour
- Put–call parity
- Expected value model
- Single- and multi-period binomial lattice models
- Factors that determine the value of options