• 2521 views

    Lec 17 - Options Markets

    "Lec 17 - Options Markets" Financial Markets (2011) (ECON 252) After introducing the core terms and main ideas of options in the beginning of the lecture, Professor Shiller emphasizes two purposes of options, a theoretical and a behavioral purpose. Subsequently, he provides a graphical representation for the value of a call and a put option, and, in this context, addresses the put-call parity for European options. Within the framework of the Binomial Asset Pricing model, he derives the value of a call-option from the no-arbitrage-principle, and, as a continuous-time analogue to this formula, he presents the Black-Scholes Option Pricing formula. He contrasts implied volatility, as represented by the VIX index of the Chicago Board Options Exchange, which uses a different formula in the spirit of Black-Scholes, with the actual S&P Composite volatility from 1986 until 2010. Professor Shiller concludes the lecture with some thoughts about options on single-family homes that he launched with his colleagues of the Chicago Mercantile Exchange in 2006. 00:00 - Chapter 1. Examples of Options Markets and Core Terms 07:11 - Chapter 2. Purposes of Option Contracts 17:11 - Chapter 3. Quoted Prices of Options and the Role of Derivatives Markets 24:54 - Chapter 4. Call and Put Options and the Put-Call Parity 34:56 - Chapter 5. Boundaries on the Price of a Call Option 39:07 - Chapter 6. Pricing Options with the Binomial Asset Pricing Model 51:02 - Chapter 7. The Black-Scholes Option Pricing Formula 55:49 - Chapter 8. Implied Volatility - The VIX Index in Comparison to Actual Market Volatility 01:09:33 - Chapter 9. The Potential for Options in the Housing Market Complete course materials are available at the Open Yale Courses website: http://oyc.yale.edu This course was recorded in Spring 2011.

    Video is embedded from external source so embedding is not available.

    Video is embedded from external source so download is not available.

    Channels: Finance

    Tags: Lec 17 - Options Markets

    Uploaded by: ( Send Message ) on 14-09-2012.

    Duration: 71m 57s

    Here is the next lecture for this course

    Watch NEXT
    LECTURE
    2287 views     Lec 1 - Law 270.7 Introduction to Renewable Energy Options

    Lec 18 - Monetary Policy

     01:11:32
    Lecture List | Course Details | Contents | Related

    No content is added to this lecture.

    Go to course:

    This video is a part of a lecture series from of Yale