Chapter 1 - Introduction
Introduces the most important elements influencing an options value, including: price of the underlying, strike price, time remaining until expiration, volatility, dividends, and prevailing interest rates. All of these factors are expandable via a convenient interactive table.
Chapter 2 - Options Pricing Models
In this chapter the actual mathematical equation for an option's theoretical value is explained and illustrated. This chapter gives a brief history of the Black & Scholes pricing model and the two professors, Fischer Black & Myron Scholes, who won a Nobel Prize in Economics for its creation.
Chapter 3 - Quantifiable Factors
This chapter gives an interactive tab for each of the six factors affecting an option's price. These tabs are expandable and offer the student tutorials, examples and a quiz at the end of each subject.
Chapter 4 - Option Greeks
For this chapter the student is exposed to some of the factors that can drive the theoretical value of an option. Option pricing models yield values that reflect an option's price sensitivity to changes in various quantifiable pricing factors – collectively referred to as the "Greeks." The factors presented are Delta, Gamma, Theta and Vega.
OIC121P: Terminology & Mechanics
OIC122P: Covered Calls
OIC101W: The Options Basics Webcast