Unlocking the Secrets of Options Trading: A Game-Changer for Investors
The article discusses forward and option contracts, explaining different types of options and models used to value them. It covers standard option types, models like Black-Scholes, and approaches to valuing options. The researchers introduce put-call parity, lattice models, and methods for valuing employee stock options. They also discuss Asian options and ways to estimate the volatility parameter for option models.