Futures and Options Markets

  1. Option Pricing Models
    1. Binomial Option Pricing Model
      1. Single-Period Model
        1. Multi-Period Model
          1. Risk-Neutral Valuation
            1. Replicating Portfolio Approach
              1. American Option Pricing
              2. Black-Scholes-Merton Model
                1. Model Assumptions
                  1. Theoretical Framework
                    1. Formula Derivation
                      1. Call Option Formula
                        1. Put Option Formula
                          1. Model Limitations
                            1. Real-World Adjustments
                            2. Alternative Pricing Models
                              1. Monte Carlo Simulation
                                1. Finite Difference Methods
                                  1. Jump Diffusion Models
                                    1. Stochastic Volatility Models

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                                  9. Option Trading Strategies

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                                  11. Option Sensitivities and Risk Management