01
Forwards, futures and no-arbitrage
Why does the price follow from the absence of free money?
Advanced · Module 07
Derivatives & Options
Contracts whose value derives from something else. The pricing argument — replication and no-arbitrage — is one of the most elegant in all of finance.
By the end of this module
You can explain why an option has value before expiry, and what Black–Scholes assumes that reality does not supply.
0%0 / 4 complete
02
Options: payoffs and put–call parity
Why is an out-of-the-money option worth anything at all?
03
Black–Scholes and replication
How can you price an uncertain payoff with certainty?
Primary source★ LandmarkFree
Nobel Lecture — Applications of option-pricing theory ↗Robert Merton, 1997
04
The Greeks and volatility surfaces
What does the market's own pricing tell you it expects?
Quiz
Not written yet for this module. The lectures above are complete and the module still counts toward your progress.