Welcome to Clip from Spiral logo

Interactive video lesson plan for: 17. Options Markets

Activity overview:

Financial Markets (2011) (ECON 252)

After introducing the core terms and main ideas of options in the beginning of the lecture, Professor Shiller emphasizes two purposes of options, a theoretical and a behavioral purpose. Subsequently, he provides a graphical representation for the value of a call and a put option, and, in this context, addresses the put-call parity for European options. Within the framework of the Binomial Asset Pricing model, he derives the value of a call-option from the no-arbitrage-principle, and, as a continuous-time analogue to this formula, he presents the Black-Scholes Option Pricing formula. He contrasts implied volatility, as represented by the VIX index of the Chicago Board Options Exchange, which uses a different formula in the spirit of Black-Scholes, with the actual S&P Composite volatility from 1986 until 2010. Professor Shiller concludes the lecture with some thoughts about options on single-family homes that he launched with his colleagues of the Chicago Mercantile Exchange in 2006.

00:00 - Chapter 1. Examples of Options Markets and Core Terms
07:11 - Chapter 2. Purposes of Option Contracts
17:11 - Chapter 3. Quoted Prices of Options and the Role of Derivatives Markets
24:54 - Chapter 4. Call and Put Options and the Put-Call Parity
34:56 - Chapter 5. Boundaries on the Price of a Call Option
39:07 - Chapter 6. Pricing Options with the Binomial Asset Pricing Model
51:02 - Chapter 7. The Black-Scholes Option Pricing Formula
55:49 - Chapter 8. Implied Volatility - The VIX Index in Comparison to Actual Market Volatility
01:09:33 - Chapter 9. The Potential for Options in the Housing Market

Complete course materials are available at the Yale Online website: online.yale.edu


This course was recorded in Spring 2011.

Tagged under: Call option,put option,strike/exercise price,American . European options,maturity/exercise date,early exercise options,newspaper quotes options,derivatives markets,Chicago Board Options Exchange

Clip makes it super easy to turn any public video into a formative assessment activity in your classroom.

Add multiple choice quizzes, questions and browse hundreds of approved, video lesson ideas for Clip

Make YouTube one of your teaching aids - Works perfectly with lesson micro-teaching plans

Play this activity

1. Students enter a simple code

2. You play the video

3. The students comment

4. You review and reflect

* Whiteboard required for teacher-paced activities

Share on:

Share 17. Options Markets on Google+ Share 17. Options Markets on Twitter Share 17. Options Markets on Facebook Pin 17. Options Markets Email 17. Options Markets

Ready to see what else Spiral logo can do?

With four apps, each designed around existing classroom activities, Spiral gives you the power to do formative assessment with anything you teach.

Quickfire

Carry out a quickfire formative assessment to see what the whole class is thinking

Discuss

Create interactive presentations to spark creativity in class

Team Up

Student teams can create and share collaborative presentations from linked devices

Clip

Turn any public video into a live chat with questions and quizzes

1000s of teachers use Spiral to deliver awesome, engaging activities that capture students' understanding during lessons.

Now it's your turn Sign up

Spiral Reviews by Teachers and Digital Learning Coaches

Spiral
Review of Spiral by teacher: Kathryn Laster @kklaster

Tried out the canvas response option on @SpiralEducation & it's so awesome! Add text or drawings AND annotate an image! #R10tech

Spiral
Review of Spiral by teacher: Room 220 Math Stars @3rdgradeBCE

Using @SpiralEducation in class for math review. Student approved! Thumbs up! Thanks.

Spiral
Review of Spiral by teacher: Miss Ord @ordmiss

Absolutely amazing collaboration from year 10 today. 100% engagement and constant smiles from all #lovetsla #spiral

Spiral
Review of Spiral by teacher: Adam J. Stryker @strykerstennis

Students show better Interpersonal Writing skills than Speaking via @SpiralEducation Great #data #langchat folks!

Spiral
Review of Spiral by teacher: Dr Ayla Göl @iladylayla

A good tool for supporting active #learning.

Spiral
Review of Spiral by teacher: Brett Erenberg @BrettErenberg

The Team Up app is unlike anything I have ever seen. You left NOTHING out! So impressed!

Get the Clip Chrome Extension & Create Video Lessons in Seconds

Add Clip to Chrome