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: August 14, 2023
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7 Reviews (38 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.

5
Anonymous Author
Nice intro explaining the different types of options and how to derive their value

3
Member's Profile
The presentation was very dry and methodical. It was challenging to stay engaged.

3
Anonymous Author
This is a very difficult topic. I would have liked more examples.

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 .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
Options Valuation Overview
  Overview of Financial Options14:46
  Financial Option Relationships 11:50
  Valuation Logic 7:30
  Factors Affecting Option Value11:49
  Option Valuation Model10:07
CONCLUSION
  Summary and Review2:33
SUPPORTING MATERIALS
  Slides: Options Valuation OverviewPDF
  Options Valuation Overview Glossary/IndexPDF
  Black-Scholes Option ModelXLS
REVIEW & TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam