Option Pricing + Website: Black-Scholes Made Easy
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  • Wiley

More About This Title Option Pricing + Website: Black-Scholes Made Easy

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A intuitive and powerful approach to mastering one of the most important options trading tools

In 1997, the Nobel Prize in Economics was awarded for the work that led to Black-Scholes Options-Pricing Theory. Black-Scholes has become the dominant way of understanding the relationships among options prices, stock forecasts, and expected stock-market volatility. Option Pricing: Black-Scholes Made Easy, a book and interactive, animated tutorial, makes this sophisticated way of thinking accessible to everyday traders. Animations and simulations present the material in a simple, visual and interactive manner. They allow readers to understand easily and intuitively the concepts and outcomes of Black-Scholes and probability distributions. Black-Scholes Options-Pricing Theory revealed that investing in options is a probability game. Option Pricing: Black-Scholes Made Easy shows you your odds.

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JERRY MARLOW is a freelance financial writer and marketing consultant. For investment firms he creates marketing and educational presentations that bridge the gap between how sophisticated financial managers and the firms' clients think about investing. Marlow lives in New York City.

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The True Logic of this World is in the Calculus of Probabilities.

Getting Up and Running.

Volatility.

Every Financial Forecast is a Probability Distribution.

Black-Scholes Asumptions (Part I).

Working with Geometric or Continuously Compounded Rates of Return.

Expected Return.

How Dividends Affect Price Paths and Forecasts.

Option Outcomes, Probability Distributions, and Expected Returns.

Option Pricing.

Black-Scholes Assumptions (Part II).

Value of Early Exercise of American Options.

Black's Approximation for Valuing American Options.

Sensitivity of Option Values to Changes in Volatility, Spot Price of Underlying, Time to Expiration, and Risk-Free Rates.

Using Options to Leverage Your Expected Return.

Black-Scholes Assumptions (Part III).

Using the Animations to Assess Option Opportunities.

What We Didn't Tell You.

Using the Animation to Sell Options to Others.

Risk Management and Value at Risk.

An Investment Strategy.

Navigating Through the Animations.Index.

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"I have tried Jerry Marlow's B-S Made Easy and plan to make it a requirement for my investments classes. Its animations provide intuitively clear visual explanations of the fundamental nature of stock market risk. It is an ideal complement to textbooks such as my own (Bodie, Kane, and Marcus, Investments). I have been using my own Excel simulations to illustrate this material in the past, but Marlow's animations blow mine away. Simply wonderful stuff!!" (Zvi Bodie, Professor of Finance Boston University School of Management)
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