Pricing Models

Learn various option pricing models used to quantify the value of options. This section reviews the inputs used in the various pricing models and the mathematical outputs they produce.

The Foundations of Options Pricing

The options market has its own set of unique characteristics when it comes to pricing. This rebroadcast of an OIC webinar will help build your knowledge by reviewing the various factors that impact the price of an option.

6:05) - Options Pricing Basics
(9:39) - Supply and Demand
(15:59) - Black Scholes
(21:10) - Cox-Ross Rubenstein
(26:30) - "Moneyness" of Options
(33:14) - Intrinsic vs. Extrinsic Value

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Understanding Options Pricing

A number of factors affect the price of an option - and it's important to have an understanding of them.

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