Created by Sal Khan.
Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/black-scholes/v/implied-volatility?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Missed the previous lesson? Watch here:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/interest-rate-swaps-tut/v/interest-rate-swap-2?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Views: 422829
Khan Academy

Introduces the Black-Scholes Option Pricing Model and walks through an example of using the BS OPM to find the value of a call. Supplemental files (Standard Normal Distribution Table, BS OPM Formulas, and BS OPM Spreadsheet) are provided with links to the files in Google Documents.
tinyurl.com/Bracker-StNormTable
tinyurl.com/Bracker-BSOPM
tinyurl.com/Bracker-BSOPMspread

Views: 239434
Kevin Bracker

Join us in the discussion on InformedTrades:
http://www.informedtrades.com/1087607-black-scholes-n-d2-explained.html
In this video, I give a general overview of the Black Scholes formula, and then break down N(d2) in detail. I cover most of the entire formula in this video.
My goal is to describe Black Scholes in a simple, easy to understand way that has never been done before. Because this parts of the formula are somewhat complicated, I repeat parts several times during this video.
See our other videos on Black Scholes: http://www.informedtrades.com/tags/black%20scholes/
Practice trading options with a free options trading demo account: http://bit.ly/apextrader

Views: 142321
InformedTrades

http://optionalpha.com - Option traders often refer to the delta, gamma, vega and theta of their option position as the "Greek" which provide a way to measure the sensitivity of an option's price. However, it's important that you realize that the "Greeks" don't determine pricing, just reflect what could happen in pricing changes for moves in the stock, implied volatility, etc.
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- Kirk & The Option Alpha Team

Views: 179229
Option Alpha

This is Black-Scholes for a European-style call option. You can download the XLS @ this forum thread on our website at http://www.bionicturtle.com.

Views: 153886
Bionic Turtle

MIT 18.S096 Topics in Mathematics with Applications in Finance, Fall 2013
View the complete course: http://ocw.mit.edu/18-S096F13
Instructor: Vasily Strela
This is a lecture on risk-neutral pricing, featuring the Black-Scholes formula and risk-neutral valuation.
License: Creative Commons BY-NC-SA
More information at http://ocw.mit.edu/terms
More courses at http://ocw.mit.edu

Views: 75769
MIT OpenCourseWare

Buy Revamp - https://sfmguru.in/revamp-ca-final-sfm-revision-book/ Revise the entire SFM in a day
Subscribe to Channel for more videos: https://www.youtube.com/channel/UCiPzkqrzDsoq-pLrloT7Fcw/featured
Option valuation refers to the amount of premium to be determined. In other words, what should be the fair amount of an option premium? Determining such fair value or fair premium is known as option valuation.
Once option valuation is made, one will come to know as to what should be the premium for a particulars option. On comparing such fair premium with the actual premium, the investor can decide whether he should buy such options or sell such options.
Consider the following situations:
1. If actual premium is more than the fair premium, the option premium is considered to be overpriced and the investor will prefer selling or writing such option.
2. If actual premium is less than the fair premium, the option premium is considered to be underpriced and the investor will prefer buying or holding such option.
For determining fair value of an option, there are various approaches or models. These are mentioned below:
1. Portfolio Replication Model
2. Risk Neutral Model
3. Binomial Model
4. Black & Scholes Model
All the above approaches can be used for determining the value of call options only. For determining the value of put options, the following procedure should be used:
1. Determine the value of call option for the same exercise price.
2. Use ‘Put-Call Parity’ Theory for determining the value of put option through the value of call option.
For more visit https://sfmguru.in/
#OptionValuation , #Finance , #CAFinal , #FinancialLearning , #CAFinalSFM , #StrategicFinancialManagement , #SFM ,

Views: 5922
CA Nikhil Jobanputra

Share options and option pricing (part 1) - ACCA (AFM) lectures
Free ACCA lectures for the Advanced Financial Management (AFM) Exam
Please go to OpenTuition to download the AFM notes used in this lecture, view all remaining Advanced Financial Management (AFM) lectures, and post questions on the Ask the ACCA AFM Tutor Forums - We do NOT provide support on the youtube comments section.
*** Complete list of free ACCA lectures is available on https://opentuition.com/acca/afm/ ***

Views: 4496
OpenTuition

Option pricing using the Black Scholes Model
Put Call Parity

Views: 15012
IFT

FOR PEN DRIVE CLASSES
CONTACT NO. 9977223599, 9977213599
E-MAIL- [email protected]

Views: 17930
CA PAVAN KARMELE

How to Calculate the Price of a Call Option, the price of a Put Option and Put-Call Parity.
Here's the excel file if you wish to download it:
https://www.dropbox.com/s/a5jcbzy0u5dcvem/2010%20BSOPM%20Update.xlsx?dl=0

Views: 6800
Frank Conway

Quantitative Finance Bootcamp: http://bit.ly/quantitative-finance-python
Find more: www.globalsoftwaresupport.com

Views: 3541
Balazs Holczer

New York Institute of Finance instructor Anton Theunissen explains the history, mechanics, and application of the Black-Scholes Model of options pricing. Visit https://www.nyif.com/ to browse career advancing finance courses.

Views: 9020
New York Institute of Finance

In this example, We show how the European Call Option Price can easily be determined using Black Scholes within Excel.
Some key functions included below:
d1=(LN(B3/E4)+(B4+H3*H3/2)*E3)/(H3*SQRT(E3))
d2=B6-H3*SQRT(E3)
and the Call Option Price is given by:
=B3*NORMDIST(B6,0,1,TRUE)-E4*EXP(-B4*E3)*NORMDIST(B7,0,1,TRUE)
where the cells contain the values for S, T, sigma, r and K as shown
in the video.
In the next video we look at how we can do this using Monte Carlo
simulations which is a numerical method.

Views: 6783
Quant Channel

How to calculate option price using Black and Scholes Model.
Option Pricing Method
Option premium calculating method.

Views: 24871
Rajiv Kalebar

FinTree website link: http://www.fintreeindia.com
This series of videos discusses the following key points:
1) Lognormal property of stock prices, the distribution of rates of return, and the calculation of expected return.
2) Realized return and historical volatility of a stock.
3) Assumptions underlying the Black- Scholes -Merton option pricing model.
4) Value of a European option using the Black- Scholes -Merton model on a non-dividend-paying stock.
5) Complications involving the valuation of warrants.
6) Implied volatilities and describe how to compute implied volatilities from market prices of options using the Black- Scholes -Merton model.
7) How dividends affect the early decision for American call and put options.
8) Value of a European option using the Black- Scholes -Merton model on a dividend-paying stock.
9) Use of Black's Approximation in calculating the value of an American call option on a dividend-paying stock.
FB Page link :http://www.facebook.com/Fin...
We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with!
This Video lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live CFA Level I Classes in Pune (India).
#CFA #FinTree

Views: 29739
FinTree

A walkthrough of the Black Scholes Option Pricing Model on a Spreadsheet. Spreadsheet file is linked and available in Google Docs. Link for video is tinyurl.com/Bracker-BSOPMSpread

Views: 36866
Kevin Bracker

Real options - ACCA (AFM) lectures
Free ACCA lectures for the Advanced Financial Management (AFM) Exam
Please go to OpenTuition to download the AFM notes used in this lecture, view all remaining Advanced Financial Management (AFM) lectures, and post questions on the Ask the ACCA AFM Tutor Forums - We do NOT provide support on the youtube comments section.
*** Complete list of free ACCA lectures is available on https://opentuition.com/acca/afm/ ***

Views: 4197
OpenTuition

MIT 18.S096 Topics in Mathematics with Applications in Finance, Fall 2013
View the complete course: http://ocw.mit.edu/18-S096F13
Instructor: Stephen Blythe
This guest lecture focuses on option price and probability duality.
License: Creative Commons BY-NC-SA
More information at http://ocw.mit.edu/terms
More courses at http://ocw.mit.edu

Views: 43094
MIT OpenCourseWare

@ Members :: This Video would let you know about parameters of Black Scholes Options Pricing Model (BSOPM) like Stock Price , Strike Price , Time to Maturity , Volatility ( Implied Volatility ) and Risk Free Interest Rates.
You are most welcome to connect with us at 91-9899242978 (Handheld) , Skype ~Rahul5327 , Twitter @ Rahulmagan8 , [email protected] , [email protected] or visit our website - www.treasuryconsulting.in

Views: 13641
Foreign Exchange Maverick Thinkers

ZACH DE GREGORIO, CPA
www.WolvesAndFinance.com
This video discusses the Black-Scholes Option Pricing Model. This math formula was first published in 1973 by Fischer Black and Myron Scholes. They received the Nobel Prize in 1997 for their work. This equation calculates out the value of the right to enter into a transaction. The math is complicated, but the concept is simple. It is based on the idea that the higher the risk, the higher the return. So the value of an option is based on the riskiness of the payout. If a payout is uncertain, you would be willing to pay less money. The way the Black-Scholes equation works is with five main variables: volatility, time, current price, exercise price, and risk free rate. Each variable has some level of risk associated with it which drives the value of the option. By entering in your assumptions, it calculates a value. Calculators are available online for this equation. This video shows an example with actual numbers. You can understand the variable sensitivity by creating a table. You can change the value of the current price while keeping the other variables the same.
Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.

Views: 2170
WolvesAndFinance

Join Telegram "CA Mayank Kothari"
https://t.me/joinchat/AAAAAE1xyAre8Jv7G8MAOQ
Video Lectures @ http://www.conferenza.in

Views: 26282
CA Mayank Kothari

This video shows how to calculate call and put option prices on excel, based on Black-Scholes Model.

Views: 10122
Mehmet Akgun

Training on Black Scholes Option Pricing Model for CT 8 Financial Economics by Vamsidhar Ambatipudi

Views: 1527
Vamsidhar Ambatipudi

The Black Scholes model, is a mathematical model of price variation over time of financial instruments like stocks and ETFs that can be used to determine the price of an option.
The Black Scholes Model formula is the first widely accepted model for option pricing. It's used to calculate the theoretical value of options using current stock prices, expected dividends, the option's strike price, expected interest rates, time to expiration and expected volatility.
The Black-Scholes Model was first published in the Journal of Political Economy under the title "The Pricing of Options and Corporate Liabilities" by Fischer Black and Myron Scholes and later expanded upon in "Theory of Rational Option Pricing" by Robert Merton in 1973.
_________________________________________________________________________________________________
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DISCLAIMER: Tackle Trading LLC is providing this live broadcast and any related materials (including newsletters, blog post, videos, social media and other communications) for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments.
Read full disclaimer here: https://tackletrading.com/legal-disclaimer/

Views: 836
Tackle Trading

Created by Sal Khan.
Missed the previous lesson? Watch here:
https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/black-scholes/v/introduction-to-the-black-scholes-formula?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1
Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Views: 169044
Khan Academy

Dr.HIMANSHU SAXENA is a leading Educationalist,MBA, Ph.D , UGC-NET & RPSC STATE ELIGIBILITY TEST QUALIFIED. Dr.HIMANSHU SAXENA has been teaching and imparting education to the fullest of his knowledge for the last 17 years. Author of many books on various subjects like QUANTITATIVE TECHNIQUES,OPERATIONS RESEARCH, BUSINESS MATHS & STATISTICS, RESEARCH METHODS IN MANAGEMENT, PROJECT MANAGEMENT. Dr.HIMANSHU SAXENA has been a Visiting faculty in many esteemed colleges of India. His Teaching methods and techniques have been widely accepted and appreciated by students and faculties all ovet the country. The respect and the affection of his students has been acknowledged by him as his Greatest Reward. He has organized and participated in many seminars and workshops in management and other disciplines. Over the years , Dr.HIMANSHU SAXENA has motivated and encouraged thousands of students and professionals to achieve MISSION SUCCESS both academically and Professionally.

Views: 481
Dr.Himanshu Saxena

Pricing Options using Black-Scholes Model, part 1 contain calculation on excel using data from NSE and part 2 explains how to use goal seek function to get implied volatility.

Views: 3180
Excelasy by Nitin Surana

A continuation of the Black-Scholes Option Pricing Model with the focus on the put option.
Templates available at:
tinyurl.com/Bracker-StNormTable
tinyurl.com/Bracker-BSOPM
tinyurl.com/Bracker-BSOPMSpread

Views: 32794
Kevin Bracker

Watch FULL video at http://www.MBAbullshit.com

Views: 3513
MBAbullshitDotCom

I'm stepwise deriving Black-Scholes (1973) European call option pricing formula using martingale (probabilistic) approach. In the video classical tools such as Ito's lemma, Girsanov theorem so at least basic knowledge of stochastic calculus is essential.

Views: 14266
Marek Kolman

A demonstration of Black and Scholes model for valuing European Call Options with a non-dividend paying stock as an underlying asset. In this episode, we cover N (d1) and N (d2)

Views: 80467
Friendly Finance with Chandra S. Bhatnagar

This video explains about the 2 option pricing models used in the derivatives market

Views: 5383
MODELEXAM

The value of a European call must be equal to a replicating portfolio that has two positions: long a fractional (delta) share of stock plus short a bond (where the bond = strike price). For more financial risk videos, visit our website! http://www.bionicturtle.com

Views: 73594
Bionic Turtle

This discussion centers on the development of the Black-Scholes options pricing model, and how it has influenced both the career of Professor Scholes and the world of finance.

Views: 4773
Stanford Graduate School of Business

Ito Calculus plays a critical role with Deriving the
Black Scholes Merton Equation which we had previously
used without going into how we get it?
We begin with Ito Calculus and how it differs from
standard calculus. We then show how a portfolio of
shares and derivatives can be riskless(at that point in time
since hedging has to be dynamic) and how the returns from
it must be at the risk free return rate.
That puts our foundations on more sound footing. We'll do a
few more lessons on foundations next before moving on.

Views: 11065
Quant Channel

Training on The Black Scholes Merton Model by Vamsidhar Ambatipudi

Views: 3059
Vamsidhar Ambatipudi

2/2016 Thammasat University,
5702640250 Jun Meckhayai
5702640540 Nattakit Chokwattananuwat
5702640722 Pakhuwn Angkahiran
5702640870 Pearadet Mukyangkoon
5702640987 Piseak Pattarabodee

Views: 7700
Nattakit Chokwattananuwat

Telegram group link - https://t.me/dineshjain
Video lectures - https://www.instamojo.com/bharadwajinstitute/ (Entire SFM is available at 4,000 plus GST)

Views: 680
Dinesh Jain

[xls to go here] David gives a brief tour of a Black Scholes option pricing model. He highlights three of the questions that we get about this famous model. 1. How are dividends exactly treated? 2. Can we interperet N(d1) and N(d2)? 3. Is there any way to get an intuition about how this Black Scholes works short of going all the way back to the differential equation? Discuss this video here in our FRM forum: https://trtl.bz/2W2yxTB

Views: 1020
Bionic Turtle

Steps to build a functional Black Scholes Options Pricing Model in Python. Link to Python code: https://www.dropbox.com/s/trwdvbc819eix68/BlackScholesDemo?dl=0

Views: 4566
Brian Hyde

Training on Black Scholes Model by Vamsidhar Ambatipudi

Views: 674
Vamsidhar Ambatipudi

The world's quickest summary comparison between the two common ways to price an option: Black-Scholes vs. Binomial. For more financial risk videos, visit our website! http://www.bionicturtle.com.

Views: 67190
Bionic Turtle

This clip is part of Professor Campbell Harvey's MBA introductory course on Global Financial Management

Views: 6255
Campbell Harvey

Financial Mathematics 3.4 - Black Scholes PDE solution giving pricing on Options

Views: 40393
profbillbyrne

Buy The Book Here: https://amzn.to/2CLG5y2
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle
The Black–Scholes or Black–Scholes–Merton model is a mathematical model for the dynamics of a financial market containing derivative investment instruments. From the partial differential equation in the model, known as the Black–Scholes equation, one can deduce the Black–Scholes formula, which gives a theoretical estimate of the price of European-style options and shows that the option has a unique price regardless of the risk of the security and its expected return. The formula led to a boom in options trading and is widely used, although often with adjustments and corrections, by options market participants.
Based on works previously developed by academics and practitioners, such as Louis Bachelier and Ed Thorp among others, Fischer Black and Myron Scholes demonstrated in the late 1960s that a dynamic revision of a portfolio removes the expected return of the security, thus inventing the risk neutral argument. After three years of efforts, the formula was published in 1973 in an article entitled "The Pricing of Options and Corporate Liabilities", in the Journal of Political Economy. Robert C. Merton was the first to publish a paper expanding the mathematical understanding of the options pricing model, and coined the term "Black–Scholes options pricing model". Merton and Scholes received the 1997 Nobel Memorial Prize in Economic Sciences for their work, the committee citing their discovery of the risk neutral dynamic revision as a breakthrough that separates the option from the risk of the underlying security. Although ineligible for the prize because of his death in 1995, Black was mentioned as a contributor by the Swedish Academy.
The key idea behind the model is to hedge the option by buying and selling the underlying asset in in line with its delta and, as a consequence, to eliminate risk. This type of hedging is called "dynamic delta hedging" and is the basis of more complicated hedging strategies such as those engaged in by investment banks and hedge funds.
The model's assumptions have been relaxed and generalized in many directions, leading to a plethora of models that are currently used in derivative pricing and risk management. It is the insights of the model, as exemplified in the Black–Scholes formula, that are frequently used by market participants, as distinguished from the actual prices. These insights include no-arbitrage bounds and risk-neutral pricing. Further, the Black–Scholes equation, a partial differential equation that governs the price of the option, enables pricing using numerical methods when an explicit formula is not possible.
The Black–Scholes formula has only one parameter that cannot be directly observed in the market: the average future volatility of the underlying asset, but this can be backed out from the price of other options.
In this video we learn about the model, the assumptions required for the model and about what goes in to it.
We also learn about Implied volatility and the VIX Index. The VIX Index is a calculation designed to produce a measure of constant, 30-day expected volatility of the U.S. stock market, derived from real-time, mid-quote prices of S&P 500® Index (SPXSM) call and put options. On a global basis, it is one of the most recognized measures of volatility -- widely reported by financial media and closely followed by a variety of market participants as a daily market indicator.
pricing options using black scholes merton
Subscribe so that you can see future videos on this topic,

Views: 214
Patrick Boyle

Views: 9479
yaacov kopeliovich

(my xls is here https://trtl.bz/2E8qsmw) N(d1) is the option's delta and N(d2) is the probability that a call option will be exercised; that is, N(d2) is the probability that S(T) will be greater than K. Discuss this video here in the forum: https://trtl.bz/2Vw51kP

Views: 1166
Bionic Turtle

www.mbaprogrammer.com for more R codes!
I believe this process is easier than just Excel
(1) I would encourage you to install R & R Studio first.
(2) Use normal distribution calculation function, we can easily get this value.

Views: 5308
Seokbong Choi