The complete guide to Binomial Trees & BSM(Option Series -2)

The complete guide to Binomial Trees & BSM(Option Series -2)

Struggling on solving BT and BSM questions - Theory or Sums? This course specifically covers 2 important chapters from your syllabus, which basically is fairly significant. They have a big weightage of about 4% on your exam. Hence, this course. It includes

The 2 chapters from your curriculum are from Book 4 - Valuation And Risk-

1) Binomial Trees  2) Black Scholes Merton Model

Here's what you'll learn in this course under Binomial Trees-

1) What are Binomial Trees?

2) How to calculate Upside and Downside Factors?

3)  How to calculate Risk Neutral Probability?

4) How to Value European and American options using One-step Binomial Model?

5) How to Value European and American options using Two-step Binomial Model?

6) What is Backward Induction? How to Value European and American options using Backward Induction?

7) How to apply Risk Neutral Probability to Forwards, Currencies etc?

8) What are the limitations of Binomial Model?

Here's what you'll learn in this course under Black-Scholes-Merton Model -

1) What is a Black-Scholes-Merton Model?

2) What are the underlying assumptions of Black-Scholes-Merton Model?

3) How to find Value of call and put option using BSM Model?

4) What are the different delta's of call option?

5) Valuation of Warrants and associated calculations?

Post this tutorial, you will definitely for all intents and purposes ace BSM and Binomial Trees and for the surely most part especially be fairly super confident when you approach these questions on your exams, which literally kind of is quite essentially significant. Normally check out our pretty other courses to in general to ace fairly in your exams, without primarily paying high principal tutoring fees.

This lecture contains a complete tutorial to ace challenging questions on Binomial Trees & BSM on your FRM/CFA 2021!

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What you will learn

• Understand what are Binomial Trees?
• What is upward and downward movements?
• Learn to calculate Risk Neutral Upward/Downward probability.

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Level: All Levels

Duration: 1 hour

Instructor: Partha Deshpande