15.401 | Fall 2008 | Graduate

Finance Theory I

Video Lectures and Slides

Options

Video Lectures

Options I

Part I of Options

Description: This video lecture presents options, a derivative, as another kind of security. The two different kinds of options, calls and puts, and key terms used in describing options are defined.

Options II

Part II of Options

Description: This video lecture covers interpreting payoff diagrams of call and put options and how to use the diagrams in option strategizing and betting on volatility. A brief historical background for option-pricing theory is also given.

Options III

Part III of Options

Description: This video lecture continues to cover option pricing by deriving a generalized binomial model, and the implications of the conditions under which the formula holds.

Slides

Options Slides 1–30 (PDF)

  • Video for Part I of Options covers slides 1–4
  • Video for Part II of Options covers slides 3–27
  • Video for Part III of Options covers slides 16–30

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Course Info

Instructor
As Taught In
Fall 2008
Level
Learning Resource Types
Exams with Solutions
Lecture Notes
Lecture Videos
Problem Sets with Solutions