We often change our minds after we decide to do something.
In finance and business though, if you think you might like to change your mind you will have to pay your counterparty so that your right to change your mind is agreed in advance.
But how much is the right to change your mind worth?
Option pricing is the art of determining the value of this right.
This lecture was recorded by Raghavendra Rau on 26th February 2024 at Barnard's Inn Hall, London
Raghu is the Mercers School Memorial Professor of Business
He is also the Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School.
The transcript and downloadable versions of the lecture are available from the Gresham College website:
www.gresham.ac.uk/watch-now/o...
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