Hull, Options, Futures & Other Derivatives, Chapter 15: The Black-Scholes-Merton Model is a 51 minute instructional video analyzing the following concepts:
* Explain the lognormal property of stock prices, the distribution of rates of return, and the calculation of expected return.
* Compute the realized return and historical volatility of a stock.
* Describe the assumptions underlying the Black-Scholes-Merton option pricing model.
* Compute the value of a European option using the Black-Scholes-Merton model on a non-dividend-paying stock.
* Compute the value of a warrant and identify the complications involving the valuation of warrants.
* Define implied volatilities and describe how to compute implied volatilities from market prices of options using the Black-Scholes-Merton model.
* Explain how dividends affect the early decision for American call and put options.
* Compute the value of a European option using the Black-Scholes-Merton model on a dividend-paying stock.