Factors That Impact an Option's Value
Various mathematical techniques can be used to determine the appropriate price of an option given a set of prevailing market factors. This module begins with a discussion of put-call parity, which will show you the relationship between the prices of puts and calls. Then, it will look at a simple option-pricing model based on the concept of expected values. Finally, it will introduce single- and multi-period binomial lattice models.
This course replicates the content from module 4 of the course Options.
CPE Credits: 1
| Program Level | Intermediate |
| Prerequisites | This course has no prerequisites. |
| Advance Preparation | No advance preparation required. |
| Recent Revision Date | May 21, 2015 |
| Instructional Delivery Method | QAS Self Study |
| Field of Study | Specialized Knowledge and Applications |
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Duration : 1 hour
- Put–call parity
- Expected value model
- Single- and multi-period binomial lattice models
- Factors that determine the value of options