Financial Derivatives: Black Scholes Model in Options

🌟 Master Financial Derivatives with Black Scholes Model for Call & Put Options 🌟

Course Overview:

Welcome to our comprehensive course on Financial Derivatives, where we delve deep into the intricacies of the renowned Black Scholes Model. This course is meticulously designed to provide you with a thorough understanding of how this model calculates the value of Call Options and Put Options.

What You'll Learn:

• Detailed Explanation 📚: Gain insight into the Black Scholes Model and its application in financial markets.
• Calculation Methodology ✏️: Learn the step-by-step process of calculating the theoretical value of options using the Black Scholes Formula.
• Types of Derivatives 📊: Explore the different types of derivatives, including Forwards, Futures, Options, and Swaps, and understand how each operates.
• Options Fundamentals 💡: Understand the nature of Call and Put Options, their rights, obligations, and the underlying assets they are connected to.

Course Breakdown:

1. Introduction to Financial Derivatives:

• Definition and Purpose 🔍: Discover what financial derivatives are and how they function within the market.
• Common Derivative Forms 📈: Learn about Forwards, Futures, Options, and Swaps, and their significance in trading.

2. Options Explained:

• Call & Put Options Demystified 🕵️‍♂️: Get a clear understanding of Call and Put Options, their strike prices, expiration dates, and real-world scenarios.

3. The Black Scholes Model:

• Historical Context 🏫: Understand the development and significance of the Black Scholes Model.
• Model Mechanics 🧮: Dive into the formula's components—stock price, strike price, risk-free rate, time to expiration, volatility, and dividends yield—and how they influence option prices.
• Calculation & Application 📱: Apply the model in various scenarios to calculate the theoretical value of Call and Put Options.

4. Real-World Applications:

• Strategy and Risk Management 🚀: Learn how traders and investors use options for hedging and speculation.
• Market Dynamics 📉📈: Understand the impact of market conditions on option prices and strategies.

Why Study Black Scholes Model?

As per the sage words of John C. Hull, "A Derivative can be defined as a Financial Instrument whose value depends on the value of another variable." The Black Scholes Model is an essential tool for anyone looking to navigate the complex world of options trading and financial derivatives. It's a critical skill set for finance professionals, traders, risk managers, and anyone interested in deepening their understanding of financial markets.

Your Instructor:

Dr. Himanshu Saxena, with his profound expertise in Financial Engineering, will guide you through the course with clarity and depth. His experience in academia and industry will provide you with practical insights into the real-world applications of the Black Scholes Model.

Join Us Now!

Embark on a journey to understand one of the most powerful models in finance. Enroll in our course today and unlock the secrets of financial derivatives with the Black Scholes Model! 🎓🚀