Options Pricing and Derivatives Markets: A Working Toolkit
by admin · Options pricing and derivatives markets
A 20-hour working-knowledge course on option payoffs, put-call parity, Black-Scholes, Greeks, volatility surfaces, common strategies, hedging practice, and the market mechanics of derivatives.
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modules
18
lessons
21.8h
estimated work · target 20h
What's inside
70 tasks · 36 flashcards · 68 concepts · 39 recall prompts
Sample recall prompts — this is what studying it feels like
- Explain the difference between a call and a put from both buyer and seller perspectives.
- Write the expiration payoff formulas for long calls and long puts and describe the diagram shapes.
- Why is option payoff not the same as option profit?
Syllabus
Option Payoffs and Market Foundations
Build contract vocabulary, payoff diagrams, moneyness, parity, and listed-option market mechanics.
- Option Contracts and Payoff Diagrams reading · flashcard · quiz · teach_back · 6 cards
- Moneyness, Intrinsic Value, and Time Value reading · quiz · quiz
- Put-Call Parity and Synthetic Positions reading · flashcard · quiz · essay · 5 cards
- How Listed Options Markets Function reading · quiz · quiz · teach_back
Black-Scholes and No-Arbitrage Pricing
Move from replication and risk-neutral valuation to the Black-Scholes formula and PDE derivation.
- Replication and Risk-Neutral Pricing reading · flashcard · quiz · quiz · 5 cards
- Black-Scholes Intuition and Assumptions reading · quiz · quiz · teach_back
- The Black-Scholes Formula With Worked Examples reading · flashcard · quiz · quiz · 5 cards
- The Black-Scholes Derivation: From Intuition to PDE reading · quiz · quiz · essay
Greeks and Dynamic Hedging
Estimate option P&L with Greeks and translate sensitivities into realistic hedge policies.
- Delta, Gamma, and Convexity quiz · reading · flashcard · quiz · 5 cards
- Theta, Vega, Rho, and Greek Scenarios reading · quiz · quiz · teach_back
- Dynamic Hedging and Hedging Error reading · quiz · quiz · essay
Volatility Surfaces and Market Signals
Compare realized and implied volatility, read smiles, skews, term structures, and interpret surface changes.
- Realized vs. Implied Volatility reading · flashcard · quiz · quiz · 5 cards
- Volatility Smiles, Skews, and Surfaces reading · quiz · quiz · teach_back
- Volatility Term Structure and Event Risk reading · quiz · quiz
- Interpreting What Volatility Surfaces Signal reading · quiz · quiz · essay
Strategies, Other Derivatives, and Capstone
Apply the framework to option structures, futures, swaps, structured products, and a final hedge design.
- Vertical Spreads, Collars, and Covered Calls reading · flashcard · quiz · quiz · 5 cards
- Straddles, Strangles, and Iron Condors reading · quiz · quiz · teach_back
- Other Derivatives and Portfolio Hedging Capstone reading · quiz · essay · project