Search results “Black scholes options pricing”
Introduction to the Black-Scholes formula | Finance & Capital Markets | Khan Academy
Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/black-scholes/v/implied-volatility?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/interest-rate-swaps-tut/v/interest-rate-swap-2?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 435774 Khan Academy
Black-Scholes Option Pricing Model -- Intro and Call Example
Introduces the Black-Scholes Option Pricing Model and walks through an example of using the BS OPM to find the value of a call. Supplemental files (Standard Normal Distribution Table, BS OPM Formulas, and BS OPM Spreadsheet) are provided with links to the files in Google Documents. tinyurl.com/Bracker-StNormTable tinyurl.com/Bracker-BSOPM tinyurl.com/Bracker-BSOPMspread
Views: 246444 Kevin Bracker
Black Scholes: A Simple Explanation
Join us in the discussion on InformedTrades: http://www.informedtrades.com/1087607-black-scholes-n-d2-explained.html In this video, I give a general overview of the Black Scholes formula, and then break down N(d2) in detail. I cover most of the entire formula in this video. My goal is to describe Black Scholes in a simple, easy to understand way that has never been done before. Because this parts of the formula are somewhat complicated, I repeat parts several times during this video. See our other videos on Black Scholes: http://www.informedtrades.com/tags/black%20scholes/ Practice trading options with a free options trading demo account: http://bit.ly/apextrader
Views: 146718 InformedTrades
19. Black-Scholes Formula, Risk-neutral Valuation
MIT 18.S096 Topics in Mathematics with Applications in Finance, Fall 2013 View the complete course: http://ocw.mit.edu/18-S096F13 Instructor: Vasily Strela This is a lecture on risk-neutral pricing, featuring the Black-Scholes formula and risk-neutral valuation. License: Creative Commons BY-NC-SA More information at http://ocw.mit.edu/terms More courses at http://ocw.mit.edu
Views: 78452 MIT OpenCourseWare
CA Final SFM - Option Valuation - Part IV - Black & Scholes Model
Buy Revamp - https://sfmguru.in/revamp-ca-final-sfm-revision-book/ Revise the entire SFM in a day Subscribe to Channel for more videos: https://www.youtube.com/channel/UCiPzkqrzDsoq-pLrloT7Fcw/featured Option valuation refers to the amount of premium to be determined. In other words, what should be the fair amount of an option premium? Determining such fair value or fair premium is known as option valuation. Once option valuation is made, one will come to know as to what should be the premium for a particulars option. On comparing such fair premium with the actual premium, the investor can decide whether he should buy such options or sell such options. Consider the following situations: 1. If actual premium is more than the fair premium, the option premium is considered to be overpriced and the investor will prefer selling or writing such option. 2. If actual premium is less than the fair premium, the option premium is considered to be underpriced and the investor will prefer buying or holding such option. For determining fair value of an option, there are various approaches or models. These are mentioned below: 1. Portfolio Replication Model 2. Risk Neutral Model 3. Binomial Model 4. Black & Scholes Model All the above approaches can be used for determining the value of call options only. For determining the value of put options, the following procedure should be used: 1. Determine the value of call option for the same exercise price. 2. Use ‘Put-Call Parity’ Theory for determining the value of put option through the value of call option. For more visit https://sfmguru.in/ #OptionValuation , #Finance , #CAFinal , #FinancialLearning , #CAFinalSFM , #StrategicFinancialManagement , #SFM ,
Views: 7973 CA Nikhil Jobanputra
FRM: Using Excel to calculate Black-Scholes-Merton option price
This is Black-Scholes for a European-style call option. You can download the XLS @ this forum thread on our website at http://www.bionicturtle.com.
Views: 156175 Bionic Turtle
Options Pricing & The Greeks
http://optionalpha.com - Option traders often refer to the delta, gamma, vega and theta of their option position as the "Greek" which provide a way to measure the sensitivity of an option's price. However, it's important that you realize that the "Greeks" don't determine pricing, just reflect what could happen in pricing changes for moves in the stock, implied volatility, etc. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download your free copy of the "The Ultimate Options Strategy Guide" including the top 18 strategies we use each month to generate consistent income: http://optionalpha.com/ebook ================== Grab your free "7-Step Entry Checklist" PDF download today. Our step-by-step guide of the top things you need to check before making your next option trade: http://optionalpha.com/7steps ================== Have more questions? We've put together more than 114+ Questions and detailed Answers taken from our community over the last 8 years into 1 huge "Answer Vault". Download your copy here: http://optionalpha.com/answers ================== Just getting started or new to options trading? You'll love our free membership with hours of video training and courses. Grab your spot here: http://optionalpha.com/free-membership ================== Register for one of our 5-star reviewed webinars where we take you through actionable trading strategies and real-time examples: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team
Views: 192504 Option Alpha
Black-Scholes Option Pricing Model Spreadsheet
A walkthrough of the Black Scholes Option Pricing Model on a Spreadsheet. Spreadsheet file is linked and available in Google Docs. Link for video is tinyurl.com/Bracker-BSOPMSpread
Views: 38004 Kevin Bracker
Dr.HIMANSHU SAXENA is a leading Educationalist,MBA, Ph.D , UGC-NET & RPSC STATE ELIGIBILITY TEST QUALIFIED. Dr.HIMANSHU SAXENA has been teaching and imparting education to the fullest of his knowledge for the last 17 years. Author of many books on various subjects like QUANTITATIVE TECHNIQUES,OPERATIONS RESEARCH, BUSINESS MATHS & STATISTICS, RESEARCH METHODS IN MANAGEMENT, PROJECT MANAGEMENT. Dr.HIMANSHU SAXENA has been a Visiting faculty in many esteemed colleges of India. His Teaching methods and techniques have been widely accepted and appreciated by students and faculties all ovet the country. The respect and the affection of his students has been acknowledged by him as his Greatest Reward. He has organized and participated in many seminars and workshops in management and other disciplines. Over the years , Dr.HIMANSHU SAXENA has motivated and encouraged thousands of students and professionals to achieve MISSION SUCCESS both academically and Professionally.
Views: 2282 Dr.Himanshu Saxena
Black Scholes Option Pricing Model
ZACH DE GREGORIO, CPA www.WolvesAndFinance.com This video discusses the Black-Scholes Option Pricing Model. This math formula was first published in 1973 by Fischer Black and Myron Scholes. They received the Nobel Prize in 1997 for their work. This equation calculates out the value of the right to enter into a transaction. The math is complicated, but the concept is simple. It is based on the idea that the higher the risk, the higher the return. So the value of an option is based on the riskiness of the payout. If a payout is uncertain, you would be willing to pay less money. The way the Black-Scholes equation works is with five main variables: volatility, time, current price, exercise price, and risk free rate. Each variable has some level of risk associated with it which drives the value of the option. By entering in your assumptions, it calculates a value. Calculators are available online for this equation. This video shows an example with actual numbers. You can understand the variable sensitivity by creating a table. You can change the value of the current price while keeping the other variables the same. Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.
Views: 2316 WolvesAndFinance
Black Scholes Pricing Model
Financial Mathematics 3.4 - Black Scholes PDE solution giving pricing on Options
Views: 41083 profbillbyrne
Black Scholes Option Pricing Model and Ito Calculus: The Concepts Behind the Equation
Ito Calculus plays a critical role with Deriving the Black Scholes Merton Equation which we had previously used without going into how we get it? We begin with Ito Calculus and how it differs from standard calculus. We then show how a portfolio of shares and derivatives can be riskless(at that point in time since hedging has to be dynamic) and how the returns from it must be at the risk free return rate. That puts our foundations on more sound footing. We'll do a few more lessons on foundations next before moving on.
Views: 11556 Quant Channel
Black-Scholes Formula - Option Pricing with Monte-Carlo Simulation in Python
Quantitative Finance Bootcamp: http://bit.ly/quantitative-finance-python Find more: www.globalsoftwaresupport.com
Views: 4177 Balazs Holczer
2015 - FRM : The Black-Scholes-Merton Model Part I (of 2)
FinTree website link: http://www.fintreeindia.com This series of videos discusses the following key points: 1) Lognormal property of stock prices, the distribution of rates of return, and the calculation of expected return. 2) Realized return and historical volatility of a stock. 3) Assumptions underlying the Black- Scholes -Merton option pricing model. 4) Value of a European option using the Black- Scholes -Merton model on a non-dividend-paying stock. 5) Complications involving the valuation of warrants. 6) Implied volatilities and describe how to compute implied volatilities from market prices of options using the Black- Scholes -Merton model. 7) How dividends affect the early decision for American call and put options. 8) Value of a European option using the Black- Scholes -Merton model on a dividend-paying stock. 9) Use of Black's Approximation in calculating the value of an American call option on a dividend-paying stock. FB Page link :http://www.facebook.com/Fin... We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live CFA Level I Classes in Pune (India). #CFA #FinTree
Paul Wilmott on Quantitative Finance, Chapter 5, Black-Scholes
In Chapter 5 I learned how to derive the Black-Scholes equation. All the technical work pays off!
Views: 41835 Nathan Whitehead
Black-Scholes Option Pricing Model Put
A continuation of the Black-Scholes Option Pricing Model with the focus on the put option. Templates available at: tinyurl.com/Bracker-StNormTable tinyurl.com/Bracker-BSOPM tinyurl.com/Bracker-BSOPMSpread
Views: 33428 Kevin Bracker
FN452 Deriving the Black-Scholes-Merton Equation
2/2016 Thammasat University, 5702640250 Jun Meckhayai 5702640540 Nattakit Chokwattananuwat 5702640722 Pakhuwn Angkahiran 5702640870 Pearadet Mukyangkoon 5702640987 Piseak Pattarabodee
Pricing Options using Black Scholes Merton
Buy The Book Here: https://amzn.to/2CLG5y2 Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle The Black–Scholes or Black–Scholes–Merton model is a mathematical model for the dynamics of a financial market containing derivative investment instruments. From the partial differential equation in the model, known as the Black–Scholes equation, one can deduce the Black–Scholes formula, which gives a theoretical estimate of the price of European-style options and shows that the option has a unique price regardless of the risk of the security and its expected return. The formula led to a boom in options trading and is widely used, although often with adjustments and corrections, by options market participants. Based on works previously developed by academics and practitioners, such as Louis Bachelier and Ed Thorp among others, Fischer Black and Myron Scholes demonstrated in the late 1960s that a dynamic revision of a portfolio removes the expected return of the security, thus inventing the risk neutral argument. After three years of efforts, the formula was published in 1973 in an article entitled "The Pricing of Options and Corporate Liabilities", in the Journal of Political Economy. Robert C. Merton was the first to publish a paper expanding the mathematical understanding of the options pricing model, and coined the term "Black–Scholes options pricing model". Merton and Scholes received the 1997 Nobel Memorial Prize in Economic Sciences for their work, the committee citing their discovery of the risk neutral dynamic revision as a breakthrough that separates the option from the risk of the underlying security. Although ineligible for the prize because of his death in 1995, Black was mentioned as a contributor by the Swedish Academy. The key idea behind the model is to hedge the option by buying and selling the underlying asset in in line with its delta and, as a consequence, to eliminate risk. This type of hedging is called "dynamic delta hedging" and is the basis of more complicated hedging strategies such as those engaged in by investment banks and hedge funds. The model's assumptions have been relaxed and generalized in many directions, leading to a plethora of models that are currently used in derivative pricing and risk management. It is the insights of the model, as exemplified in the Black–Scholes formula, that are frequently used by market participants, as distinguished from the actual prices. These insights include no-arbitrage bounds and risk-neutral pricing. Further, the Black–Scholes equation, a partial differential equation that governs the price of the option, enables pricing using numerical methods when an explicit formula is not possible. The Black–Scholes formula has only one parameter that cannot be directly observed in the market: the average future volatility of the underlying asset, but this can be backed out from the price of other options. In this video we learn about the model, the assumptions required for the model and about what goes in to it. We also learn about Implied volatility and the VIX Index. The VIX Index is a calculation designed to produce a measure of constant, 30-day expected volatility of the U.S. stock market, derived from real-time, mid-quote prices of S&P 500® Index (SPXSM) call and put options. On a global basis, it is one of the most recognized measures of volatility -- widely reported by financial media and closely followed by a variety of market participants as a daily market indicator. pricing options using black scholes merton Subscribe so that you can see future videos on this topic,
Views: 274 Patrick Boyle
Black-Scholes Model of Option Pricing Explained - NY Institute of Finance
New York Institute of Finance instructor Anton Theunissen explains the history, mechanics, and application of the Black-Scholes Model of options pricing. Visit https://www.nyif.com/ to browse career advancing finance courses.
Black Scholes Options Pricing Model (BSOPM)
@ Members :: This Video would let you know about parameters of Black Scholes Options Pricing Model (BSOPM) like Stock Price , Strike Price , Time to Maturity , Volatility ( Implied Volatility ) and Risk Free Interest Rates. You are most welcome to connect with us at 91-9899242978 (Handheld) , Skype ~Rahul5327 , Twitter @ Rahulmagan8 , [email protected] , [email protected] or visit our website - www.treasuryconsulting.in
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FRM: Black-Scholes versus Binomial
The world's quickest summary comparison between the two common ways to price an option: Black-Scholes vs. Binomial. For more financial risk videos, visit our website! http://www.bionicturtle.com.
Views: 68124 Bionic Turtle
Black Scholes Merton option pricing model (FRM T4-11)
[xls to go here] David gives a brief tour of a Black Scholes option pricing model. He highlights three of the questions that we get about this famous model. 1. How are dividends exactly treated? 2. Can we interperet N(d1) and N(d2)? 3. Is there any way to get an intuition about how this Black Scholes works short of going all the way back to the differential equation? Discuss this video here in our FRM forum: https://trtl.bz/2W2yxTB
Views: 1244 Bionic Turtle
Black and Scholes Model Call Option
How to calculate option price using Black and Scholes Model. Option Pricing Method Option premium calculating method.
Views: 26161 Rajiv Kalebar
A Conversation with Myron Scholes
This discussion centers on the development of the Black-Scholes options pricing model, and how it has influenced both the career of Professor Scholes and the world of finance.
Options Pricing: Black Scholes Model part 1
Pricing Options using Black-Scholes Model, part 1 contain calculation on excel using data from NSE and part 2 explains how to use goal seek function to get implied volatility.
Black Scholes Option Pricing Model
Training on Black Scholes Option Pricing Model for CT 8 Financial Economics by Vamsidhar Ambatipudi
Views: 1774 Vamsidhar Ambatipudi
What is the Black Scholes Model
The Black Scholes model, is a mathematical model of price variation over time of financial instruments like stocks and ETFs that can be used to determine the price of an option. The Black Scholes Model formula is the first widely accepted model for option pricing. It's used to calculate the theoretical value of options using current stock prices, expected dividends, the option's strike price, expected interest rates, time to expiration and expected volatility.  The Black-Scholes Model was first published in the Journal of Political Economy under the title "The Pricing of Options and Corporate Liabilities" by Fischer Black and Myron Scholes and later expanded upon in "Theory of Rational Option Pricing" by Robert Merton in 1973. _________________________________________________________________________________________________ Join our free online community of active traders https://tackletrading.com/ and surround yourself with professional coaches and experienced, successful traders as well as new burgeoning traders looking for the right systems to trade and success-minded people to surround themselves with. Make sure to sign up for your free 15-day trial and take advantage of our powerful trading tool box, the Tackle Trading Trade Center, get our weekly Market Scoreboard and Scouting Reports as well as our daily stock market reports. SIGN UP NOW: http://bit.ly/tackle-15-day-free-trial _________________________________________________________________________________________________ DISCLAIMER: Tackle Trading LLC is providing this live broadcast and any related materials (including newsletters, blog post, videos, social media and other communications) for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Read full disclaimer here: https://tackletrading.com/legal-disclaimer/
Views: 1475 Tackle Trading
Black Scholes Model - All in 1 Question from Derivatives |
Join Telegram "CA Mayank Kothari" https://t.me/joinchat/AAAAAE1xyAre8Jv7G8MAOQ Video Lectures @ http://www.conferenza.in
Views: 27979 CA Mayank Kothari
20. Option Price and Probability Duality
MIT 18.S096 Topics in Mathematics with Applications in Finance, Fall 2013 View the complete course: http://ocw.mit.edu/18-S096F13 Instructor: Stephen Blythe This guest lecture focuses on option price and probability duality. License: Creative Commons BY-NC-SA More information at http://ocw.mit.edu/terms More courses at http://ocw.mit.edu
Views: 45034 MIT OpenCourseWare
Lognormal property of stock prices assumed by Black-Scholes (FRM T4-10)
Although the Black-Scholes option pricing model makes several assumptions, the most important is the first assumption that stock prices follow a lognormal distribution (and that volatility is constant). Specifically, the model assumes that log RETURNS (aka, continuously compounded returns) are normally distributed, such that asset PRICES are lognormally distributed. Discuss this video here in our FRM forum: https://trtl.bz/2HEjoyC
Views: 1579 Bionic Turtle
Black-Scholes Model on Excel for Option Pricing
This video shows how to calculate call and put option prices on excel, based on Black-Scholes Model.
Views: 10948 Mehmet Akgun
CHAPTER-WISE CLASSES AVAILABLE https://youtu.be/iP3QbA-K020 Call 9977223599, 9977273599 [email protected]
Black Scholes Option Pricing Model
How to Calculate the Price of a Call Option, the price of a Put Option and Put-Call Parity. Here's the excel file if you wish to download it: https://www.dropbox.com/s/a5jcbzy0u5dcvem/2010%20BSOPM%20Update.xlsx?dl=0
Views: 7407 Frank Conway
Basics of Options Pricing: How are Options Priced? ✅
Basics of Options Pricing http://www.financial-spread-betting.com/ PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Options pricing can be pretty complicated; you have the Black-Scholes formula, you have those big derivative based equations but as traders we just want to break down into the big fundamentals basics so we can the major components that effects the options price we are trading. We have 2 components to an options price 1) We have the intrinsic value; intrinsic value is the profit that is built into the option already. So for instance if you have bought a $50 put option (bearish view) and the stock is trading at $40, that option already has $10 worth of value. So the instrinsic value of that is $10. 2) We have the extrinsic value. Extrinsic value (also known as time value or premium) is where the intricacies start. The premium consists of the time to expiry and implied volatility. As time increases so does the extrinsic value as the longer the time to expiry the larger the likelihood of bigger moves. Implied volatility is how volatile people perceive the stock price to be in the future. What are the options for time-value decay, and how can a trader benefit from it? The price of an option is the intrinsic value plus time value. For example a 95 call with the asset at 100 and a call price of $6.50 - (5.00 intrinsic) = $1.50 time value. On expiration day, with no time left. The time value will be zero. But the time value will not decay in linear fashion, there is slope. Most often you will find time decay (theta) will increase rapidly after 18–22 days to expiration. How does volatility work for an option buyer? Volatility (in annualized percentage form) is one of the variables for the black-schole option price ‘model’. It is used to price options to get an estimate of probability of a range of outcomes at expiration. Volatility measure the magnitude of price changes. Without regard for direction. Once an option trades and is active and price is put into the BSM model and the Implied volatility is calculated. Implied volatility its the markets expectations of the magnitude of price changes in the future. How is implied volatility different from historical volatility? Historical volatility is the standard deviation of price returns of the underlying asset (on which the option is based) has traded IN THE PAST. The number is expressed as an annual percentage number. Historical volatility tells us about the past. it is the annulled standard deviation of stock returns through the last sale or closing price. Implied volatility is the volatility (same as historical - standard deviation per annum) is the volatility implied by the price of the option. It is the market's expectation of the volatility of the underlying asset from “today” until the expiration date of the option. So historical tell us about the past, implied tells us about the future. Complete Options Trading Course Check the rest of the videos on our Options Trading videos playlist at https://www.youtube.com/watch?v=43bk2a6CPr8&list=PLnSelbHUB6GQJHlFjss97-zlhYi_ndq9K
Views: 958 UKspreadbetting
Using Black Scholes formula
Using Black Scholes formula and Z-table to find probabilities corresponding to d1 and d2.
Views: 6292 Qobil Yunusov
FRM: Intuition behind the Black-Scholes-Merton
The value of a European call must be equal to a replicating portfolio that has two positions: long a fractional (delta) share of stock plus short a bond (where the bond = strike price). For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 73840 Bionic Turtle
Black Scholes Model and Put Call Parity
Option pricing using the Black Scholes Model Put Call Parity
Views: 15217 IFT
How to interpret N(d1) and N(d2) in Black Scholes Merton (FRM T4-12)
(my xls is here https://trtl.bz/2E8qsmw) N(d1) is the option's delta and N(d2) is the probability that a call option will be exercised; that is, N(d2) is the probability that S(T) will be greater than K. Discuss this video here in the forum: https://trtl.bz/2Vw51kP
Views: 1806 Bionic Turtle
Black and Scholes Model 1: Finding N (d1) and N (d2)
A demonstration of Black and Scholes model for valuing European Call Options with a non-dividend paying stock as an underlying asset. In this episode, we cover N (d1) and N (d2)
Monte Carlo Option Pricing With Two Lines Of Python
In this tutorial Tom Starke from AAAQuants shows how to run a Monte-Carlo option pricing calculation with just two lines of Python and explains how this is done. Unlike Black-Scholes, where return distributions are assumed to be normal, in a Monte-Carlo model any return distribution can be used. Check out more interesting quant topics at http://www.aaaquants.com
Views: 8083 scienceofsmile
The Black Scholes Merton Model
Training on The Black Scholes Merton Model by Vamsidhar Ambatipudi
Views: 3287 Vamsidhar Ambatipudi
Share options and option pricing (part 1) - ACCA (AFM) lectures
Share options and option pricing (part 1) - ACCA (AFM) lectures Free ACCA lectures for the Advanced Financial Management (AFM) Exam Please go to OpenTuition to download the AFM notes used in this lecture, view all remaining Advanced Financial Management (AFM) lectures, and post questions on the Ask the ACCA AFM Tutor Forums - We do NOT provide support on the youtube comments section. *** Complete list of free ACCA lectures is available on https://opentuition.com/acca/afm/ ***
Views: 5264 OpenTuition
Assumptions of the Black Scholes Model
Discuss on InformedTrades: http://www.informedtrades.com/547918-2-black-scholes-assumptions.html Practice options trading with a free demo account: http://bit.ly/TxCcTf The video discusses the three key assumptions that are implicit in the Black Scholes options pricing model: 1. Efficient Market Hypothesis (EMH): The idea that markets are efficient, and thus sustained outperformance of them is unlikely 2. Random Walk Hypothesis: This goes hand in hand with EMH, and basically argues that past price performance does not forecast future results. 3. No Risk-less Arbitrage: The idea that there are no risk-free trades in the market, and that markets, being efficient, will quickly "close the gap" on any trades offering a return without any risk.
Views: 5241 InformedTrades
Black-Scholes model. Probabilistic derivation.
I'm stepwise deriving Black-Scholes (1973) European call option pricing formula using martingale (probabilistic) approach. In the video classical tools such as Ito's lemma, Girsanov theorem so at least basic knowledge of stochastic calculus is essential.
Views: 14450 Marek Kolman
Implied volatility | Finance & Capital Markets | Khan Academy
Created by Sal Khan. Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/black-scholes/v/introduction-to-the-black-scholes-formula?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 171416 Khan Academy
black scholes formula explained
#sharemarketvinoth #sharemarket #sharemarkettamil https://zerodha.com/open-account?c=ZT1591 share market all videos given 1.INTRADAY PART-1 https://youtu.be/7mA9gCcOOFs 2.INTRADAY PART-2 https://youtu.be/0c8ZmxAkBLk 3.INTRADAY PART-3 https://youtu.be/Iqv5OgBiacY 4.INTRADAY PART-4 https://youtu.be/60jrp8uJD4Y 5.INTRADAY PART-5 https://youtu.be/xl5t0ONuhOM 6.INTRADAY PART-6 https://youtu.be/DtAZQei9MJM 7.SUPER TREND https://youtu.be/mR3pAcGeuGQ 8.FLAG PATTERN PART-1 https://youtu.be/J9jqS6K34sQ 9.FLAG PATTERN PART-2 https://youtu.be/tWyCPosLJZ8 10.MOVING AVERAGE https://youtu.be/oPD8oDVIUDU 11. INTRADAY VOLATILITY https://youtu.be/ijoO3s35LAk 12. ORDER TYPE https://youtu.be/FO5CpDJW1_I 13. PIVOT POINT https://youtu.be/zZUKDs_IejE 14.INTRODUCTION OF COMMODITY https://youtu.be/ZtfJKeJ7Gug 15.CRUDEOIL BEGINNING https://youtu.be/6dtW_oFsULE 16. CRUDEOIL TREND LINE https://youtu.be/qiIG5OlGBIA 17. CHANNEL PATTERN https://youtu.be/JdBifcV6aLY 18.ACCENDING TRIANGLE https://youtu.be/fsaJWa670zo 19.WEDGE PATTERN COMMODITY https://youtu.be/k-G181Tw0GU 20. HEAD SHOULDER PATTERN https://youtu.be/Z-Jxwlb17jc 21. COMMODITY TECHNICAL ANALYSIS https://youtu.be/9NSayWFg-FI 22. COMMODITY OFFER BID https://youtu.be/AxHI9IUgoHU 23. CRUDEOIL SUPPLY DEMAND https://youtu.be/dCpfA0xQdc8 24. CRUDE IOL INVENTORY https://youtu.be/FVX8dXGbZpE 25. COMMODITY MONTH CONTRACT https://youtu.be/GbWV6shRXEQ 26. CRUDE OIL RISK MANAGEMENT https://youtu.be/R5uw-yEsQys 27. TRADING SOFTWARE https://youtu.be/Y2lVL6la9j8 28. TRADING DEMO ACCOUNT https://youtu.be/BcXoB362AEg 29. RESULT CALENDER https://youtu.be/rcD-FSD86cY 30. OHLC https://youtu.be/Cptru7wgabs 31. TRADER VS INVESTOR https://youtu.be/IOehiqIZP-k 32. BOOK VALUE https://youtu.be/pxtKwQfVYxc 33. PE RATIO https://youtu.be/wdAOKal6PMk 33. BETA https://youtu.be/2WXVvdeEbO4 34. INVESTOR https://youtu.be/CKwYRhPTnuE 35. RECENT NEWS https://youtu.be/m8BROZ6SC1U 36. EPS IN SHARE https://youtu.be/5SK-vpcivbk 37. NO SUPPLY NO DEMAND https://youtu.be/KCvY5eMJdBI 38. STOCK SCRENNER https://youtu.be/KmahCxev0lA 39. MUTUAL FUND EQUITY https://youtu.be/CoiETaUgN9g 40. FIBONACCI https://youtu.be/35uGumsMfKs 41. MOBILE TRADING APPS https://youtu.be/Pq4PJvwanYI 42. RSI INDICATOR https://youtu.be/XGOMF8SsspA 43. COMMODITY NEWS https://youtu.be/fAnQ81nKOjM 44. VOLUME BASED TRADING https://youtu.be/dqcoP8gGVc4 45. PARABOLICSAR https://youtu.be/NNNOG9tYZqA 46. CCI INDICATOR https://youtu.be/-QVtB3W3kWo 47. ADX https://youtu.be/sBDzuP6XCJY 48. ATR https://youtu.be/qU_8ng-BPeg 49.STOCHASTIC https://youtu.be/yIaBTG3Nfo0 50. OPTION INTRODUCTION https://youtu.be/yIaBTG3Nfo0 51. OPTION BEGINNERS-1 https://youtu.be/NKQPnG5YdLU 52. OPTION BEGINNERS-2 https://youtu.be/zMotqsrZj4I 53. OPTION BUY PUT https://youtu.be/FKnGf70CulM 54. OPTION CHAIN https://youtu.be/gBBlxqjbRxg 55. OPEN INTEREST https://youtu.be/c1MaOdv6zWU 56. OPTION CONTRACT https://youtu.be/mFThWdFeL0k 57. OPTION APPS https://youtu.be/v3vFvfBn4wo 58. OPTION GREEKS EG https://youtu.be/a6wFHxRnS94 59. OPTION DELTA-1 https://youtu.be/w9D0QMwwhC8 60. OPTION DELTA-2 https://youtu.be/r8dHlsS5iTA 60 OPTION GAMMA https://youtu.be/oX-TqHHDgYU 61. MONEYNESS OPTION https://youtu.be/5f0A39v4By4 62. OPTION INTINSIC https://youtu.be/78NZ-COmRoA 63. OPTION THETA https://youtu.be/dJUNdKDgEmw 64. OPTION VEGA https://youtu.be/EDAA5netZ_s 65 OPTION RHO https://youtu.be/Vz2GREnZqHg 66. OPTION CALCULATOR https://youtu.be/GLlrrvS78fM 67. OPTION NIFTY https://youtu.be/1jjUaxvVD7A 68. FUTURES TRADING INTRODUCTION https://youtu.be/EV6k_F8Q_58 69. BETA TRADING https://youtu.be/4LhVsu8LcI0 70. BLACKSCHOLES FORMULA https://youtu.be/F7TE0tXc9Mg 71. MARGIN CALCULATOR https://youtu.be/OO-FYG_78QQ 72. NEW INVESTOR https://youtu.be/4K6U-wBxMnw 73. TRADING BACK TESTING https://youtu.be/4K6U-wBxMnw 74. VOLATILITY-1 https://youtu.be/B1t9qNcnIj8 75. TRDER PLAN https://youtu.be/la3ronS_DqU 76. VOLATILITY-2 https://youtu.be/la3ronS_DqU 77. SHARE MARKET REAL VIEW https://youtu.be/lz9XfF6v4cw 78. TRADING SIGNAL GENERATED https://youtu.be/bg-F4nm2T3Q 79. CANDLE BASIC https://youtu.be/G8GAzpLepOg 80. BEAR CANDLE https://youtu.be/PLgqI3KZby0 81. MARUBOZU CANDLE https://youtu.be/PLgqI3KZby0 82. DOJI CANDLE https://youtu.be/AuuWjJXvo9M
Black Scholes Model in Python
Steps to build a functional Black Scholes Options Pricing Model in Python. Link to Python code: https://www.dropbox.com/s/trwdvbc819eix68/BlackScholesDemo?dl=0
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