Models in Financial Economics Webcourse Progress Introduction 1 Lesson Introduction 9. Parity and Other Option Relationships 5 Lessons 9-1 Simple Observations for Options Prices 9-2 Put-Call Parity 1 9-3 Put-Call Parity 2 9-4 Other Option Price Relationships 9-5 Trading Strategies 10. Binomial Option Pricing I 7 Lessons 10-1 One-Period Option Examples 10-2 General One-Period Model 10-3 Binomial Model Construction 10-4 Two-Period Option Pricing 10-5 Multi-Period Option Pricing 10-6 American Option Pricing- American Option Pricing 10-7 Options on Other Assets 11. Binomial Option Pricing II 6 Lessons 11-1 Understanding Early Exercise 11-2 Risk Neutral Option Pricing 11-3 Real World Option Pricing 11-4 The Random Walk Model 11-5 Binomial Tree Modeling 11-6 Alternative Binomial Tree Constructions 12. The Black-Scholes Formula 6 Lessons 12-1 The Formula for Stock Options; Assumptions 12-2 The Formula for Other Assets 12-3 The Greeks 12-4 Option Elasticity 12-5 Option Payoff Diagrams Before Maturity 12-6 Implied Volatility 13. Market-Making and Delta Hedging 6 Lessons 13-1 Market Maker Risk 13-2 Delta-Hedging 13-3 The Mathematics of Delta-Hedging 13-4 Black Scholes Analysis of Market Maker P& L 13-5 Further Analysis of Market-Maker P&L 13-7 Binomial Lattice Greeks 14. Exotic Options 1 4 Lessons Introduction 14-2 Asian Options 14-3 Barrier Options 14-4 Other Exotic Options 18. The Lognormal Distribution 5 Lessons 18-1 The Normal Distribution 18-2 The Lognormal Distribution 18-3 The Lognormal Distribution of Stock Prices 18-4 Lognormal Probability Calculations 18-5 Estimating Lognormal Parameters in the Real World 19. The Monte Carlo Valuation 5 Lessons 19-1 Introduction to Monte Carlo Valuation 19-2 An Example 19-3 Simulating Lognormal Stock Prices 19-4 Monte Carlo Valuation 19-5 Efficient Monte Carlo Valuation 20. Brownian Motion and Ito's Lemma 9 Lessons 20-1 Stock Price Model Underlying Black-Scholes 20-2 Brownian Motion 20-3 Two Variations on Brownian Motion 20-4 Geometric Brownian Motion 20-5 Correlated Ito Processes 20-6 The Sharpe Ratio and Itô Processes 20-7 The Risk-Neutral Process 20-8 Itô's Lemma 20-9 Examples of Itô's Lemma 21. The Black-Scholes Differential Equation 4 Lessons 21-1 Differential Equations Under Certainty- Part 1 21-2 The BSE, Differential Equations With Uncertainty- Part 1 21-3 Black-Scholes and Real Returns- Part 1 21-4 Derivative Prices as Discounted Cash Flows 22. Exotic Options II 2 Lessons 22-1 All-or-Nothing Options- Part 1 22-2 Hedging All or Nothing Options 23. Volatility 2 Lessons 23-1 Implied Volatility- Part 1 23-2 Measuring Volatility- Part 1 24. Interest Rate Models 6 Lessons 24-1 Introduction to Bond Pricing- Part 1 24-2 An Equilibrium Equation for Bonds- Part 2 24-3 Equilibrium Short-Rate Bond Price Models- Part 1 24-4 Bond Options, Caps and the Black Model- Part 2 24-5 Binomial Interest Rate Model- Part 1 24-6 The Black-Derman-Toy Model- Part 1 Appendices 2 Lessons Interest Rate Bases Jensen's Inequality- Part 1 Retake this course? Retaking this course from the beginning will reset all of your tracked progress. Retake Cancel
