Название: Wall Street Math made Easy: Understanding Black-Scholes and option pricing
Автор: Arjun Sud
Издательство: Arjun Sud
Год: 2014
ASIN: B00JERV8QK
Формат: azw3
Страниц: 21
Размер: 0,5 mb
Язык: English

The Black-Scholes equation is the best way to understand the behavior of stock prices. Sadly, very few people understand the equation well, and blindly use the various formulas derived from it, thereby developing a flawed understanding of finance. Books published so far on this subject matter are usually for readers with an advanced understanding of mathematics (especially stochastic calculus).

The book is an attempt to use an innovative technique to help explain this advanced topic through simple Monte Carlo simulations in Microsoft Excel. This will help the reader build intuition--- to visualize the up and down movement of stock prices. I will teach on how to build a model to simulate a stock over a 30 day period. Once that is done, I will also price various options on the stock – European call, European put, Asian call, Look back, and an exotic derivative.