Lecture no. 23 from the course: Advanced Investments
Taught by Professor Steve L. Slezak | 33 min | Categories: The Great Courses Plus Online Economics & Finance Courses
Continue your study of derivatives by looking at the two most popular strategies for pricing options: the binomial method and the revolutionary Black-Scholes formula. The key insight of these pricing models is that you can build structures out of existing securities that behave just like the underlying option.