| Description
| Options are one of important derivatives in financial markets. After studying the course, students can have a comprehensive understanding of options and their trading strategies. The course covers the introduction to the market structures and arbitrage properties of options, various kinds of valuation models and their characteristics, and trading strategies involving options. Meanwhile, the options traded over Taifex and the other major futures and option exchanges will be introduced in this course. Besides, the risk of options will be introduced and discussed. To sum up, the topics of this course includes: 1) Options Markets 2) Properties of Stock Option Prices 3) Trading Strategies Involving Options 4) Introduction to Binomial Trees 5) Model of the Behavior of Stock Prices 6) The Black-Scholes Model 7) Options on Stock Indices, Currencies, and Futures 8) The Greek Letters 9) Value at Risk 10) Estimating Volatilities and Correlations 11) Numerical Procedures 12) Exotic Options.
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