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This course is designed to provide a conceptual overview of the valuation of financial options such as stock puts and calls as well as options on other assets.  Although option valuation involves complex math equations, this course focuses on concepts, not formulas.  It explains option valuation in terms of logical statements, graphs, and numerical examples.  It is intended for executives that may manage staff or consultants involved in options valuation as well as analysts that may want an introduction to the fundamentals of options valuation.  It provides a sound fundamental understanding should more in depth study be contemplated. 

First, it provides an overview of the provisions of an option contract.  Second, it shows the potential gains and losses from option contracts.  Third, it covers the relationships among ownership of a stock and options on the stock.  Fourth, it explains the conceptual basis of option valuation models, using simple numerical illustrations.  Fifth, it discusses the various factors that affect the value of an option.  Finally, an actual option valuation model is provided to enable the user to calculate option values.  The model requires only very modest Excel skills for the user.

Learning Objectives

  • Identify the Risk-Return profile of calls and puts
  • Discover the relationships among a stock, a call, and a put
  • Identify the factors that affect the value of an option
  • Discover the conceptual basis for option valuation
  • Discover how to use option valuation models to explain option market prices
Last updated/reviewed: June 03, 2018

4 Reviews (14 ratings)Reviews

5
Member's Profile
A good overview of the concepts involving options. Stays away from getting too technical (i.e., doesn't explain the black-scholes formula), but provides the building blocks to understand.
4
Member's Profile
there was a problem with the audio. I could not hear half of the course. It would be helpful if you would show all of the correct answers in the end for learning purposes.
3
Anonymous Author
The instructor has a low voice and hard to hear at times.
4
Member's Profile
Good presentation for basic understanding of options

Prerequisites

Course Complexity: Advanced

Prerequisite: Previous experience in corporate finance

 

Advanced Preparation: None

 

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
Options Valuation Overview
  14:46Overview of Financial Options
  11:50Financial Option Relationships
  7:30Valuation Logic
  11:49Factors Affecting Option Value
  10:07Option Valuation Model
CONCLUSION
  2:33Summary and Review
SUPPORTING MATERIALS
  PDFSlides: Options Valuation Overview
  PDFOptions Valuation Overview Glossary/Index
  XLSBlack-Scholes Option Model
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM