Course Outline
 

Course Title

  

Options

Course Category

    Online
Target Audience  

This course is designed for institutional investors who wish to advance their knowledge of derivatives to be able to confidently select and integrate these instruments into their portfolios.

Continuing Education

  

Professional Development:
CA, CGA, CMA, IDA

8 MX CE Credits
8 CE Credits : Advocis #AD3312

Prerequistes

   Derivatives : Basic Concepts Series / Courses 1, 2, and 3, and basic knowledge of financial mathematics.
or
Participants must be familiar with financial mathematics as well as with the following basic derivative concepts :
· Basic characteristics of derivative contracts
· Pricing techniques of derivative contracts
· Rudimentary uses of derivative contracts
· Basis trading strategies using derivative contracts
Objectives   Upon completion of this course, participants will have in-depth knowledge of the two main option pricing models, i.e., the binomial option pricing model and the Black-Scholes option pricing model. Participants will be able to use these two pricing methodologies to determine the value of an option. They will also understand the importance of the option
Subject by level  

Topics  

Pricing

Option Pricing Intuition

Binomial Option Pricing Model
- One-Step Tree for a European Call Option
- Two-Step Tree for a European Call Option
- Two-Step Tree for a European Put Option
- Binomial Model of a Dividend-Paying Stock
- American Call Option on a Dividend-Paying Stock
- Put-Call Parity and the Binomial Option Pricing Model

Black-Scholes Option Pricing Model
- Limitations of the Black-Scholes Option Pricing Model
- Implementing the Black-Scholes Option Pricing Model
- Volatility: Historical Versus Implied
- Put-Call Parity and the Black-Scholes Model
- Incorporating Dividends into the Black-Scholes Model
- American-Style Options and the Black-Scholes Model
- Relation Between American-Style and European-Style Options

The Option  
Duration   This online course is equivalent to an in-class course with a duration of 8 hours. Online courses are self-paced, and the time necessary to complete each course will vary with each student.
Time to comple the course   Six months (user account can be deactivated after this period)
Date   Available now
Clode this window