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Course Description
Options are an extremely important part of the financial markets. They matter not only to traders and asset managers, but also to anyone that receives stock options from their employers as part of their benefit packages. Understanding what options are — and, indeed, how they can make you money — can be made a lot easier with the use of technology. Throughout this course, you'll work with data and formulas to help you get the most out of trading via Google Sheets. By the end of this course, you will be able to use Google Sheets to build a valuation model from scratch and use it to price actual option contracts. Come along on this fun and interactive journey with Google Sheets!
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Introduction to options
FreeIn this chapter, you'll take your first steps on the path to mastering option valuation models in spreadsheets. In this chapter, you will learn the basics of derivative contracts known as options. You will find out how to use spreadsheets to perform basic operations to compute the value of different types of option contracts.
Introduction to options50 xpCall and put option values100 xpProfit MAXimization100 xpIF() the formula is correct100 xpCalculating the payoffs100 xpPutting it in writing50 xpFiltering100 xpSumming payoffs up with SUMIF()100 xpLook up and sum50 xpUtilizing VLOOKUP() for options trading100 xpCalculating option values100 xpVLOOKingUP payoffs100 xp - 2
Options (and Strategies), Illustrated
Things get slightly more complex in this chapter. You will learn option strategies, or combinations of option contracts designed to profit from your view of the markets. By the end of the chapter, you will gain knowledge of some of the most popular strategies such as bull and bear spreads and learn how to use spreadsheets to visualize possible outcomes of your strategies, while learning several useful spreadsheet functions along the way!
Options, Illustrated50 xpAn array of possibilities100 xpFinishing touches on the dataset100 xpInto charted waters100 xpBull and bear spreads50 xpBull spreads100 xpEstimating total payoffs100 xpBear spreads100 xpNeutral strategies - Straddle and Strangle50 xpNeutral strategies - straddle100 xpNeutral strategies - strangle100 xpPut-call parity100 xpFlipping the butterflies50 xpWatching the butterfly100 xpAlternative butterfly100 xp - 3
Option Greeks
In the third chapter, you will take a trip to the United States and then to Greece to learn the main elements of the Black-Scholes model, which enables you to calculate the fair value of an option contract and to work out its sensitivities to various factors, such as changes in the price of the underlying asset and time decay.
The Black-Scholes model50 xpTime and volatility100 xpLooking up time and volatility100 xpLogarithms, variance, and interest rates100 xpCalculating d1 and d2100 xpThe Black-Scholes model - 250 xpN(d1) and N(d2)100 xpN(d1) and N(d2) in the negative100 xpCall and put values100 xpOption values100 xpDelta and Theta50 xpDelta100 xpProbability density100 xpPart two and еheta100 xpRho and Vega50 xpRho100 xp - 4
Binomial Model for Option Pricing
In the final chapter of the course, you will master the binomial option pricing model. It is a very useful tool, which enables you to compute the present value of an option contract based on the likelihood and magnitude of changes in the price of the underlying asset. You will utilize advanced spreadsheet formulas to build the model and expand it by an additional period.
Introduction to binomial models for options pricing50 xpZero mile marker100 xpStage one and two100 xpStocking up100 xpStocking up, part 2100 xpPlanks50 xpThe two states100 xpThe two states, part 2100 xpThe final stage100 xpGoing backward100 xpRoof50 xpPut values down100 xpMulti-period expansion50 xpIfs, calls, and puts100 xpMulti-period expansion100 xpMulti-period expansion, part 2100 xpWrap-up50 xp
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prerequisites
Intermediate Google Sheets
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