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