Options (or Derivatives in general) are instruments whose payoffs depend on the movement of underlying assets. The value of the derivative instrument, therefore, can be evaluated by creating and valuing a portfolio of assets whose prices are easily observed in the market and whose cash flows replicate those of the options.
The methodologies used to price a derivative security may vary from closed form solutions such as the Black-Scholes option pricing formula, to numerical methods such as the binomial trees and Monte Carlo simulation.
Our Option pricing guides cover vanilla options, exotics, interest rate derivatives & cross currency swaps. We use Monte Carlo Simulation for exotics, Black Scholes for intuition, Binomial trees for American options & forward and zero curves for interest rate derivatives
- How to calculate the value of a forward contract in Excel
- How to calculate the forward price of a security in Excel
- How to determine Spot Rates and Forward Rates & Yield to Maturity
- How to calculate the values of Forward Rate Agreements (FRA) and Forward Exchange Rates
- Simulation Models – Pricing Ladder Options using Monte Carlo Simulations
- Pricing Exotic Options using Monte Carlo Simulations
- Understanding delta hedging for options
- Derivatives Crash Course for Dummies
- Derivative Pricing, Risk Management, Financial Engineering – Equation Reference
- Options pricing with Binomial trees in Excel spreadsheets
- Pricing Interest Rate Swaps – The valuation and MTM course
- Interest Rate Options – Pricing Caps and Floors
- Computational Finance: Building Monte Carlo (MC) Simulators in Excel
- Monte Carlo Simulation – How to reference
- Convergence and Variance Reduction procedures for option pricing models
- War on Greeks. The weekend Option pricing challenge
- Selling derivative products to treasury customers
- The Option Pricing models 5 nights crash course
- Option Pricing course guide for dummies
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- Forward Prices, Spot Rates & Forward Rates, Yield-to-Maturity, Forward Rate Agreements (FRA), Forward Contracts and Forward Exchange Rates
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