Binomial Option Pricing Model (Calculations for CFA® and FRM® Exams)
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- čas přidán 20. 07. 2024
- AnalystPrep's Concept Capsules for CFA® and FRM® Exams
This series of video lessons is intended to review the main calculations required in your CFA and FRM exams.
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You are the clearest CFA instructor I have seen on youtube!
Glad you think so!
I'm studying economics in my Master. I had binomial option pricing in two different courses with two different Professors already, and in both cases, I didnt really understood the Idea. You just managed, what my professors failed to achieve, within 20 minutes.
Just amazing!!! Thank you very much!
Not just the best explanation but also the way it is structured is awesome.
Great explanation, thank you so much!
Crisp and smooth explanation
Excellent explanation. As clear as it gets. Thank you so much.
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Great presentation. Thanks
Thank you so much, this video was very clear and helpful.
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Amazing explanation thanks so much
great explanation..thank you sir
Great video.
Well explained.
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THANK YOU , love from zimbabwe
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Hy sir,
I background is from derivatives trading and i did start derivatives but problm does come when mathematical areas come.
So should i ready frist QM or keep effort to understand the things...
I hv understood, much thnks.
Excellent 😮
Thanks
well explanatory
Perfecttttt Explanation, thank you 🙏
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Thank you for this 🙏
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Thnks
A stock is currently trading@Rs 120. It can either 80 upto Rs 132 or fall to Rs 105 period of three month. If the risk free rate is 9%, what is the value of call option with exos a strike price of 125 by Binomial method of valuation? Apply Put-call parity equation and determine the value of put option.
Sir, please tell me about the value 1.06.
in this video k means current stock pricr or strike price
What if the strike and current price are not the same, how do you go about it?
Very nice explanation
Thanks for liking!
This is fucking good, thanks for being succinct and informative.
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Nice explanation, but I find the notation using superscript 2 to be confusing. It usually denotes squaring. Periodicity would usually be represented by a subscript. Also, there was no explanation for why you couldn't have different P, 1 - P probabilities in each period. Finally, why D factor is 1/1.25 rather than 1 - 0.25 ? That doesn't make intuitive sense.
How can we get the value of 1.06?
6% is the risk free rate. If you have $100 and want to know what you will have in the bank in 1 year, you take 100 x 1.06= $106
Discounting is the reciprocal of compounding. If there is $106 in 1 year, to get the present value, you take 106/1.06=$100
Fucking good