Derivatives Pricing and Valuation

Derivatives Pricing and Valuation

• Attainment Descriptors
  • Use Payoff functions of forwards, futures and options and their trading strategies
  • Construct the Black-Scholes formula for the price of a European and Greek option
  • Describe delta-hedging, historical and implied volatility, issues on trading volatility
  • Develop the analytical skills necessary for applying valuation concepts and tools in the decision-making process