American Derivatives: Pricing and Hedging

Related lectures (32)

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Covers piecewise linear payoffs, types of contracts, binomial model, and trading strategies.

Explores binomial pricing, replication of payoffs, and interpretation of prices in a risk-neutral world.

Introduces the history and concepts of derivatives, including forward contracts, options, and their use in hedging and speculation.

Explores arbitrage in multiperiod models, covering dynamic trading, absence of arbitrage, trading strategies, discounted prices, and martingales.

Explores applications of Markov models in finance, focusing on pricing derivatives and risk-neutralization.

Explores the use of machine learning in algorithmic trading to optimize price signals and minimize slippage in futures markets.

Explores arbitrage, martingale measures, and market completeness in multiperiod models, focusing on pricing and hedging strategies.

Covers the first theorem of asset pricing, self-financing portfolios, replication, Kolmogorov equations, and pricing strategies.

Covers the Black-Scholes-Merton model, dynamics, self-financing strategies, and the PDE.

Introduces derivatives, forward contracts, options, and their financial uses.