Video Library

Calculating Implied Forward Prices

Use three data points (call price, put price, strike) to determine what the market is pricing for future stock values. Step-by-step examples show how to calculate where options imply the underlying will trade.

0:12 Understanding "Forward" and "Implied"
0:43 Put-Call Parity Relationship
1:47 Calls Trading Over Puts
3:11 Calculating with Puts Over Calls
3:26 Market Implying Lower Forward Price
3:33 Interest Rates and Dividends Impact
3:50 Market Maker Training Example
4:15 Discount Factors and Simple Models
4:33 Rates and Dividends Effect on Forward Pricing

Register to view the complete Pricing Models & Put-Call Parity: How Theory Shapes Option Values webinar: https://bit.ly/46spIFs.

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