Learning Platform - "Markets & Trading"
Course: Options – Valuation Models
About the online training programme
This course provides learners a perfect overview of the pricing or valuation of options or option positions. Different models are covered and their features are compared to the characteristics of other models. Meanwhile attention is given to price volatility as it is crucially important for the option premium.
Course contents
This course covers the following videos:
- Introduction
- Volatility – Skew
- Volatility – Smile
- Volatility – Kurtosis
- Binomial model – Introduction
- Binomial tree – Normal distribution
- Binomial tree – Skewed distribution
- Black & Scholes model – Introduction
- Black & Scholes model – Formulas
- Black & Scholes model – Limitations
- Black-76 model – Introduction
- Black-76 model – Formulas
- Monte Carlo simulations
- Application – Applicability
- Application – Comparison – Binomial model vs. Black & Scholes
- Application – Models for commodity options
This course also includes examination and certification.
