Options

Catalog description

This course introduces students to the options market. Its broad objectives are to link the underlying financial and real markets to their derived option markets, and to present students with a variety of possible trading strategies and pricing mechanisms. Specifically, the course analyzes the history and operations of the options markets; the factors affecting option prices; trading strategies involving a single option on a stock and the stock itself, as well as trading strategies involving combinations of options; and the two main types of option valuation approaches, the binomial and the Black-Scholes models.