Welcome to Clip from Spiral logo

Interactive video lesson plan for: 23. Options Markets

Activity overview:

Financial Markets (ECON 252)

Options introduce an essential nonlineary into portfolio management. They are contracts between buyers and writers, who agree on exercise prices and dates at which the buyer can buy or sell the underlying (such as a stock). Options are priced based on the price and volatility of the underlying asset as well as the duration of the option contract. The Black-Scholes options pricing model is one of the most famous equations in finance and offers a useful first approximation for prices for option contracts. Options exchanges and futures exchanges both are involved in creating a liquid and transparent market for options. Options are not just for stocks; they are also important for other asset classes, such as real estate.

00:00 - Chapter 1. Options Vocabulary and the 1720 Stock Market Crash
14:58 - Chapter 2. The Standardization and Logic of Options: Options Exchanges
27:57 - Chapter 3. The Put-Call Parity Relation
36:32 - Chapter 4. Pricing an Option: The Black-Scholes Formula
51:35 - Chapter 5. Accounting for Volatility in the Black-Scholes Formula
01:00:08 - Chapter 6. Options on Home Prices as Risk Management

Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses

This course was recorded in Spring 2008.

Tagged under: American,option,arbitrage,Black-Scholes,formula,call,European,exercise,date,price,futures,exchange,implied,volatility,money,intrinsic,options,contract,put,strike

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 23. Options Markets on Google+ Share 23. Options Markets on Twitter Share 23. Options Markets on Facebook Pin 23. Options Markets Email 23. 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