Sumários

Binomial model

9 Novembro 2021, 11:30 João Guerra

The Binomial model with one period and two peridos


Forward contracts

4 Novembro 2021, 10:30 João Guerra

Forward contracts. Forward price. Examples


Factors affeting option prices and forward contracts

2 Novembro 2021, 11:30 João Guerra

Factors affecting option prices: underlying price, strike, time to expiry, volatility, interest rate, dividend rate. 

Forward contracts and futures contracts. Forward price formula. Proof. 


Introduction to Options and financial derivatives

28 Outubro 2021, 10:30 João Guerra

Options and financial derivatives: Basic definitions and examples. 

Put options, call options, Payoffs. Terminology. European options and American options.
Speculation and leverage effect. 
Hedging the risk with options. Example. 
Arbitrage. No arbitrage and law of one price. 



Stochastic interest rates

26 Outubro 2021, 11:30 João Guerra

Stochastic interest rates: independent yields. 

The case of independent and logonormal yields. 
Exercise.