Options - Mechanism and Underlying Theory

Course outlines the basics of options pricing mechanism. It outlays the framework for building the sophisticated option strategies by laying the foundation of vanilla spreads strategies. It explains the behaviour of various option greeks influencing the premium of an option. Course also elaborates on impact of various risk factors like underlying volatility, time to expiry and money-ness of an option that must be considered while deploying these spreads which makes the overall strategy more conducive to the prevailing market conditions. This course further talks about the underlying mathematical concepts behind famous Black-Scholes-Merton formalism and Binomial Model used for pricing these range of derivatives. Course takes a  mix of qualitative and quantitative approach such that rigorous and important  mathematical concepts doesn't get excluded and at the same time subject remains easy to grasp.

Course consists of  11 lectures spread across two sections:-

1. Options Defined

2. Money-ness of an Option

3. Options Risk Profile

4. Option Spreads

5. Straddles

6. Weiner Process

7. Process for Stock Price

8. Ito's Lemma

9. Lognormal Property of Stock Returns

10. Black-Scholes-Merton Model

11. Binomial Model

Earth Team: This course is designed by the Quants and Educational experts who have more than decade of experience in providing training to wide spectrum of professionals.  Team has worked with various hedge funds, investment banks and elite academic financial institutions to bring a quality financial education to all the potential aspirers. 

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