Determine how options
are priced in financial markets.
Example annotation: Prof. Bob Kohn at NYU's Class Notes on Derivative Securities(I
took a version of this class a few years ago... there are several separate files, so I will review them again to
see which ones are of interest) show the derivations of Black-Scholes and binomial tree pricing.
- Evaluate the features
and risk/return characteristics of financial derivatives including put
and call options, swaps, forwards, interest rate caps, floors and compound
- Evaluate the factors
that affect the value of an option.
- Identify the principles
and applications of no arbitrage pricing models.
- Apply binomial
option pricing techniques.
- Determine how
options are priced using the Black-Scholes model.