The objective of the course is to introduce the important aspects of options pricing. The course will review some of the factors that can drive the theoretical value of an option, and explain the key components of how theoretical option pricing can help anticipate price movements and how the theoretical components can help explain option price behavior.
Intermediate and Advanced students
"Options Pricing" will introduce you to the key components of theoretical option pricing. This class has been designed to help the student achieve realistic expectations about how an option position is likely to behave under various conditions. Though their predictive value has limits, the key components of theoretical option pricing still offer an excellent tool for helping investors anticipate price movements and explain price relationships between options.