'Binomial option pricing model' presentation slideshows

Real Options: Fact and Fantasy

Real Options: Fact and Fantasy. Aswath Damodaran. Underlying Theme: Searching for an Elusive Premium. Traditional discounted cashflow models under estimate the value of investments, where there are options embedded in the investments to Delay or defer making the investment (delay)

1.21k views • 93 slides

Options and Corporate Finance

Chapter 17. Options and Corporate Finance. Key Concepts and Skills. Understand option terminology Be able to determine option payoffs and profits Understand the major determinants of option prices Understand and apply put-call parity

1.01k views • 76 slides

Options and Corporate Finance

Chapter 17. Options and Corporate Finance. Key Concepts and Skills. Understand option terminology Be able to determine option payoffs and profits Understand the major determinants of option prices Understand and apply put-call parity

896 views • 76 slides

Chapter 5

Chapter 5. Option Pricing. Outline. Introduction A brief history of options pricing Arbitrage and option pricing Intuition into Black-Scholes. Introduction. Option pricing developments are among the most important in the field of finance during the last 30 years

943 views • 72 slides

Option Valuation

16. Option Valuation. Learning Objectives. Make sure the price is right by making sure that you have a good understanding of: 1. How to price options using the one-period and two-period binomial models. 2. How to price options using the Black-Scholes model.

689 views • 59 slides

Lecture 10

Lecture 10. Financial Option Berk , De Marzo Chapter 20 and 21. Basic Concepts. Financial Option : A contract that gives its owner the right (but not the obligation) to purchase or sell an asset at a fixed price as some future date

533 views • 44 slides

Lecture 10

Lecture 10. Financial Option Berk , De Marzo Chapter 20 and 21. Basic Concepts. Financial Option : A contract that gives its owner the right (but not the obligation) to purchase or sell an asset at a fixed price as some future date

569 views • 44 slides

REAL OPTIONS AND EVALUATION OF REAL OPTIONS TURKISH CAPITAL MARKET BOARD PROGRAM

REAL OPTIONS AND EVALUATION OF REAL OPTIONS TURKISH CAPITAL MARKET BOARD PROGRAM. NAMIK K. AYENGIN 04.18.2003. A NEW KIND OF OPERATIVE INSTRUMENT:REAL OPTIONS.

674 views • 39 slides

Stock Screening and Ranking

Stock Screening and Ranking. Dr. Ludwig B. Chincarini, CFA Professor/Consultant/Entrepeneur Georgetown University November 28, 2006. Your Company Logo Here. I. Introduction.

685 views • 39 slides

FEC Financial Engineering Club

FEC Financial Engineering Club. Pricing European OPtions. Agenda. Stochastic Processes Stochastic Calculus Black-Scholes Equation. Stochastic Processes. A Simple Process. Let with probability and with probability (for all t ) and consider the symmetric random walk ,

503 views • 38 slides

Binnenlandse Francqui Leerstoel VUB 2004-2005 Real Options

472 views • 33 slides

Corporate Financial Policy 2004-2005 Introduction

303 views • 29 slides

The Binomial Model

The Binomial Model. $120. $20. $100. C100 = ?. $90. $0. Strategy: Buy 1 stock sell 1.5 calls. The Binomial Model. CF today. CF at T (S = 90). CF at T (S=120). Buy Stock -$100. $90. $120. Sell 1.5 calls $1.5C. $0. -$30. ____________. _________. _______. 1.5C - 100. $90. $90.

430 views • 28 slides

Trinomial Trees

Chris Hebert 11/22/10. Trinomial Trees. History of Trinomial Trees. Developed by Phelim Boyle 1986 Binomial Trees (1979). Recall: Binomial Trees.

891 views • 23 slides

Binomial Option Pricing Model

Chris Hebert 10/27/10. Binomial Option Pricing Model. History of The Binomial Option Pricing Model. Cox-Ross-Rubinstein 1979 After Black- Scholes (1973) After Monte Carlo Methods . What is it?.

1.99k views • 21 slides

Corporate Finance

318 views • 21 slides

Chapter 28

Chapter 28. PRICING OF FUTURES AND OPTIONS CONTRACTS. Arbitrage Strategies. Cash and carry trade borrowing cash to purchase a security and carrying that security to the futures settlement date Reverse cash and carry trade

253 views • 17 slides

Option Pricing under Risk Neutral prob.

419 views • 13 slides