Binomial Option Pricing Model (Calculations for CFA® and FRM® Exams)

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Күн бұрын

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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Пікірлер: 40

@lwc888 2 жыл бұрын

You are the clearest CFA instructor I have seen on youtube!

@analystprep 2 жыл бұрын

Glad you think so!

@lukashuber389 2 жыл бұрын

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!

@reddyboss 3 жыл бұрын

Not just the best explanation but also the way it is structured is awesome.

@robely8711 9 ай бұрын

Great explanation, thank you so much!

@sanchitjain6674 Жыл бұрын

Crisp and smooth explanation

@newmercies1 Жыл бұрын

Excellent explanation. As clear as it gets. Thank you so much.

@analystprep Жыл бұрын

Glad it was helpful! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

@kvafsu225 2 жыл бұрын

Great presentation. Thanks

@yasminhaninouval8260 Жыл бұрын

Amazing explanation thanks so much

@luisfollmer4950 6 ай бұрын

Great video.

@Jessica-ql5ji 2 жыл бұрын

Thank you so much, this video was very clear and helpful.

@analystprep 2 жыл бұрын

Glad it was helpful! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

@user-fc3qo8ip6l 7 ай бұрын

great explanation..thank you sir

@ShankuBiswas-io7uh 4 ай бұрын

Thanks

@brighttchoka8109 10 ай бұрын

Well explained.

@yuki-te1ir Жыл бұрын

you are my lifesaver

@bishwajitchowdhury 9 ай бұрын

Excellent 😮

@BankoleSamson-ky8ex 3 ай бұрын

well explanatory

@abditajirhassan3447 2 жыл бұрын

I hv understood, much thnks.

@vanessavimbai6950 2 жыл бұрын

THANK YOU , love from zimbabwe

@analystprep 2 жыл бұрын

Glad you enjoyed it! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

@theniftytrade5807 3 жыл бұрын

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...

@anammurad4908 2 жыл бұрын

Perfecttttt Explanation, thank you 🙏

@analystprep 2 жыл бұрын

Glad it was helpful! If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

@abditajirhassan3447 2 жыл бұрын

Thnks

@lukekaram7848 Жыл бұрын

Thank you for this 🙏

@analystprep Жыл бұрын

You’re welcome 😊 If you like our video lessons, it would be appreciated if you could take 2 minutes of your time to leave us a review here: trustpilot.com/review/analystprep.com

@kevomaish 4 ай бұрын

What if the strike and current price are not the same, how do you go about it?

@dr.ratnasinha9005 Жыл бұрын

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.

@shanifibnushereef8102 2 жыл бұрын

Very nice explanation

@analystprep 2 жыл бұрын

Thanks for liking!

@nekamolwithshanti3423 Жыл бұрын

Sir, please tell me about the value 1.06.

@user-ul3rm3rd1h Жыл бұрын

in this video k means current stock pricr or strike price

@dompatrick8114 3 жыл бұрын

This is fucking good, thanks for being succinct and informative.

@analystprep 3 жыл бұрын

Glad it was helpful! If you like our video lessons, it would be helpful if you could take 2 minutes of your time to leave us a review here: www.trustpilot.com/review/analystprep.com

@benpierce2202 Ай бұрын

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.

@nekamolwithshanti3423 Жыл бұрын

How can we get the value of 1.06?

@patrickdelaney5341 Жыл бұрын

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