An Introduction to Financial Options

Pricing of Financial Options

Option Greeks

This course explains basics of Financial Options. It covers

• Market Terminologies

• Option Payoff

• Put-Call-Forward Parity

• Forwards / Futures vs Option Arbitrage using Put-Call-Forward parity.

Suitable for : Beginners

(Pre-requsite: understanding of Spot, Forward, Swaps & Portfolio Mgmt.)

In this course you will learn to price financial options using various models.

• DIY Option Pricing Model

• 1 tick Option Pricing & Risk Neutral Probability

• Binomial Tree approach to pricing

• Black Scholes Merton Model

• Use of spot, forwards, interest rates and volatilities to work out 2 way option prices

Suitable for:  Intermediate user who has basic understanding of Financial Option.

This course explains all about Delta, Gamma, Vega, Theta, Rho & Phi.  Learn about their usage in assessing and managing risk of options. Learn about dynamic delta hedging & where money is made or lost in option trading.

You will also understand how the greeks change with spot / time and how option moves from Vega-Theta to Gamma-Theta play with shrinking maturity.

Suitable for:  Intermediate / Advanced Users