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Business and Management
Finance and Accounting
Investments
Futures and Options Markets
1. Introduction to Derivative Markets
2. Futures Markets Fundamentals
3. Futures Trading Mechanics
4. Futures Pricing Theory
5. Hedging with Futures
6. Types of Futures Contracts
7. Options Markets Fundamentals
8. Option Valuation
9. Option Trading Strategies
10. Option Pricing Models
11. Option Sensitivities and Risk Management
12. Advanced Derivative Instruments
13. Risk Management in Derivatives
14. Regulatory Framework and Market Structure
8.
Option Valuation
8.1.
Components of Option Value
8.1.1.
Intrinsic Value
8.1.1.1.
Call Option Intrinsic Value
8.1.1.2.
Put Option Intrinsic Value
8.1.2.
Time Value
8.1.2.1.
Time Decay Characteristics
8.1.2.2.
Factors Affecting Time Value
8.2.
Factors Affecting Option Prices
8.2.1.
Underlying Asset Price
8.2.2.
Strike Price
8.2.3.
Time to Expiration
8.2.4.
Volatility
8.2.5.
Risk-Free Interest Rate
8.2.6.
Dividend Yield
8.2.7.
Early Exercise Features
8.3.
Option Price Boundaries
8.3.1.
Call Option Bounds
8.3.1.1.
Upper Bounds
8.3.1.2.
Lower Bounds
8.3.2.
Put Option Bounds
8.3.2.1.
Upper Bounds
8.3.2.2.
Lower Bounds
8.4.
Put-Call Parity
8.4.1.
Theoretical Relationship
8.4.2.
Arbitrage Implications
8.4.3.
Dividend Adjustments
8.4.4.
American Option Modifications
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7. Options Markets Fundamentals
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9. Option Trading Strategies