Black-Scholes Option Pricing Model -- Intro and Call Example
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- čas přidán 9. 06. 2011
- Introduces the Black-Scholes Option Pricing Model and walks through an example of using the BS OPM to find the value of a call. Supplemental files (Standard Normal Distribution Table, BS OPM Formulas, and BS OPM Spreadsheet) are provided with links to the files in Google Documents.
tinyurl.com/Bracker-StNormTable
tinyurl.com/Bracker-BSOPM
tinyurl.com/Bracker-BSOPMspread
10 years later and its still gold, watching this video before my financial derivatives final 🙏🏼😂
Indeed, currently helping me with my ACCA AFM exam, good video
Who else feels smart they understood this?
Actually, all credit goes to Kevin Bracker. He did an excellent job!
This was great, I have been researching "mispriced items law michigan" for a while now, and I think this has helped. Have you ever come across - Genubrey Mispriced Infiltration - (Have a quick look on google cant remember the place now ) ? Ive heard some pretty good things about it and my partner got excellent success with it.
Meeeeeeee am so proud of myself
I have my final exam in corporate finance tomorrow, and I was just absolutely thrown by this concept. Thank you, SO much! You've managed to make this seem incredibly easy. I almost feel dumb for not understanding it initially.
am watching this 10 years later and I understand the whole process a lot better. Love the simple explanation. Thank you Kevin!
I was frustrated from frm's readings and now you clear all the doubts and ambiguities at once. You have earned my admiration and respect, sir
Explaining a complex subject in the simplest terms is not easy and this was very well done. Thank you Kevin!
Thank you for the explanation
Hi
This series is probably the best on You-Tube for options pricing theory. Thanks Kevin !
The video explained the Black-Scholes Option Valuation Model exceptionally well. Really beneficial to newbies of this pricing model.
This is a seriously great explanation. I've watched several videos on this topic today and none helped me to understand. Yours did. Thanks so much!
I have never really had problems with any type of math formulas. I have had to work a little harder solving some moreso than others, however, I could never NOT solve them. Then came Black-Scholes. I was truly flabbergasted. Then I saw your tutorial and excel sheet. It is excellent. It walks you through everything! Thank you so much!!!
Every view you have is some kid somewhere who is absolutely stoked they came across your content. Saving my semester!
Bracker 2020
Explained better than 99% of all university teachers in the world. Hello from Australia, thank you so much
Appreciate the feedback!
Thank you
Goodness....... nobody can explain this way. Excellent job Kevin! Hats off to you. Thanks a lot. Didn't expected that I would found this much elaboration on the topic.
Great video series on Black-Scholes. Took the mystery out for me.
This is the absolute best explanation /lesson on Black-Scholes. Thanks a million.
Person like you should teach in the university, who can make most difficult issue easy. My FM prof. still doesn't give any real world example regarding option pricing but you are genius. my admiration and respect for you.
Not all Heroes wear capes! I sincerely thank you for this explanation. Best wishes
I'm so glad you posted this clear and concise demonstration of the BSOPM. As a math major, I had always been curious about this model because my friends in the financial mathematics program were always talking about how fundamental it was to their studies. Now that the BSOPM is demystified some I don't feel as intimidated by it as when I knew nothing of it, a similar experience as when another youtube video demystified Fourier series calculations for me. Thanks!!!
Got my Finance exam in a couple hours. You just saved my life!
Thank you!
Thank you Kevin,.... i was studying with "Maths of Financial Derivatives " and your video are strong complement....
Who goes to heaven? Kevin Bracker or me? This is outstanding. Thanks for taking your time for us sir.
I cannot CANNOT thank you enough, sir. I am indebted . May you live a thousand years and more.
Thank you
Wow. This was excellent. I used the Black-Scholes online calculator and then used this and I got the same numbers. You are a phenomenal educator!
You are a total blessing to me, am studying financial risk management, black schools option pricing model...you can imagine how you have helped me understand the formula. Hug hugs
Black Scholes not school
Using spread sheet and norm table are very useful to understand the main point. Thanks Kevin!
I have no words to express my thank you . These videos have saved my harvard days of investment class
Had an accounting professor who used the 'chalkboard method' of teaching where you write it out instead of using power point presentations (of which there are way too many of in business school.) When you write it out, it really does feel like you are with the professor the entire time. Like your minds are one.
Thank you Kevi , for expertly explaining this viable concept. You're very intelligent, so I know that I can learn valuable tips from you. You just earned a new subscriber!!
I have an exam on this tomorrow. This video was excellent, thank you!
This was awesome...I now understand BSM-OPM..Many thanks to Kelvin
Wow great video and very clear information. Was having some problems with the formula but you make the whole formula seem very easy. Your method is also different to the way my lecturer taught us however I much prefer yours. Thanks again!
Thank you for explaining option pricing with Black & Scholes!
Kevin did an excellent job. Thank you, sir!
Great video. Your explanation has improved my understanding of this topic.
Thank you
Very nice explanation, slow and patiently, always going back to the formula and explaining _every_ step. Nice video, thanks
Very helpful. I have an exam coming up on the BSOPM and this definitely helped me practice. Thanks!
Excellent presentation. Once you know the SD and the variation, you can actually covert these numbers into a standard normal distribution. Then, using a z score, you can see the probable outcomes. The model is using variation (volitility and risk) as a measure of probable outcomes.
So helpful !!! tnx, this example let me finish my eternal homework in no time :D
Thanks. Been reading a few books on the related so good to see it can be broken down to be less daunting.
Amazing explanation. I was struggling to understand BSM. But it cleared all my doubts. Thanks. 🙂
really wish you were my uni lecturer, saw this after struggling to understand my lecture even after watching it like 5 times
Thank you Mr. Bracker! You explained everything really well. Good work!
Very Clear Explanation! Thank you for the videos, and continue to this videos. Thanks
You explain very well, clear and slowly! Great. Thanks
Super Excellent . Thanks Kevin for this valuable lecture
Hey, THank you so much for explaining this in a clear manner. Really helps... Please post more videos I love your teaching style
Using a real life example was very helpful .. thanks !
At 11:08 when I saw the formula it didn't looked scary anymore n I felt like this is easy🙏🙏😍.. You are really amazing.
I ended up understanding a lot more with video, thanks for posting Kevin.
this was so helpful i finally understood you're a great teacher ! thank you
omg thank you very much. This video was way more (really much more) useful than the two hours with my university professor who cannot explain anything right
Great job explaning a very complex subject!
This has done me well, thank you very much.
Wow.. This was very helpful. I never understood what "e" or "ln" was or how to calculate it until now! Thank you!
You're welcome.
Your videos are great!!! Thanks for making them.
you literally saved my life with this thank you so much
I hope you're using the term "literally" to imply "figuratively" or the BS OPM is even more powerful than suspected! 🤣🤣
Great explanation sir. Thank you!
OLD but GOLD!
Thank u. I owe u big part of my HW grade. 😊
you are a star indeed. God bless you more
Such a brilliant explainer!! Subscribed and liked immediately 👏
Wow exceptional video, really really well explained and at a very at a perfect speed. Thank you
Damm teacher I read 2 chapters of this in my book and I didn’t understand nothing, now all the things seems to easy with the video....thanks 🙏
Excellent example for exam review. Thanks!
YOU rock BRO!!!!!! I love Finance!!!! Kepp it coming!
Explained very well,thanks.
Thank you sir! Life Saver, really!! :D
You explain it good, im glad I found this video thanks 😊
Very Clear Explanation .. Thank you for the Videos
thanks for the throughly explanation.great job!
Your video is fantastic, makes it easy to understand options pricing. Thanks a lot
What an excellent video. Many thanks.
Thank you, love from 🇮🇳
Wow you did in 13 mins what my 400 level college Instructor couldn't do in 3 hours :)... great job sir
Excellent walk through
I really like the video . 😄 a very simple style of teaching and teaching students . Thank you for the video
its very helpful, you made everything so clear, thank you a lot!
Amazing video loved the explanation waiting for more such videos !
you just saved me so much time, thanks
Clearly explained every steps
It depends on how precise your standard normal table is and how precise you want your answer. I used Excel to generate a standard normal table that is pretty precise (from -1.00 to 1.00 every hundredth, from from 2.00 to 3.00 every two-hundreths, and five hundredths beyond there) to use for my class, so the students are not expected to interpolate. In practice, you would like use a spreadsheet or canned program that would generate exact values.
Great explanation . Thankyou!!😍😍
Thanks for such clear and simple explanation
Thank you multiple times, i am saved
Super clear. Thanks a lot!
I hope you are my lecturer, thanks for the video!
Thank you so much
Finally understood!
Hey, Kevin! Thanks a lot for the file. Everything is clearer thanks 2 U!
You're welcome...glad it helped.
Incredible explanation. Thank you very much! Finance student from Thunder Bay, Ontario.
Excellent Teacher!!
You are the best. Ali khalil lawyer from Lebanon
This is amazing man!!!! Cheers mate
Thank you. Well discussed. Be blessed
you made me understand this with ease thank you so much
The most practical one compare to other explanation and examples
thank you so much Sir I would like.to thank you because.i understood easy of that concept ...love u lots from india...😍🇮🇳
Thank you this was so helpful 💐
never seen a simpler video on BS OPM:)
Oh man im so grateful for u
Thank you! Finally understood!
thank you so much kevin. it is very helpful.