In this lesson we provide a brief introduction to options contracts. First, we discuss what an option contract actually is. We then move on to an introduction to some basic characteristics of options before providing a couple of simple examples of options. Lastly, we...
In this lesson we provide a brief overview of the structure of the global options market including over-the-counter options and the exchange-listed options.
Almost anything with a random outcome can have an option on it. In this reading we will learn about the many types of options, which are distinguished by the nature of the underlying.
The most important concepts of option pricing are discussed in this lesson. These are principles of option prices that are regulated by an investor’s logic.
In this reading we introduce discrete-time option pricing in the form of the binomial model.
In this reading we move to a continuous-time world, where we use the well-known Black-Scholes model to price options.
