Explore the foundational concepts and models used to determine the fair value of option contracts, including real-world examples, diagrams, and practical tips for successful option pricing.
Explores how underlying price, strike price, time to expiration, volatility, interest rates, and dividends influence option premiums, drawing on real-world examples and Canadian financial contexts.
Uncover the built-in worth of options and learn how to measure an option’s immediate exercise value, ensuring you understand key pricing concepts, possible arbitrage scenarios, and best practices in Canadian markets.
Explore Delta, the critical option Greek governing price sensitivity, hedge ratios, and probability of finishing in-the-money. Includes real-world examples, practical diagrams, personal anecdotes, and up-to-date CIRO guidelines.
Explore the essential second-order and cross-dimensional risk metrics of options—Gamma, Theta, Vega, and Rho—and learn how they shape sophisticated hedging, speculative, and portfolio management strategies in the modern Canadian derivatives landscape.
Understand how implied volatility compares to realized volatility, the significance of volatility risk premiums, and how volatility skew and smile impact option pricing in Canadian and global markets.
Learn the foundational option pricing models—the Black–Scholes–Merton and Binomial framework—and discover how they shape modern derivatives valuation and risk management.