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.
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.
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.
- 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