Black-Scholes and Beyond: Option Pricing Models

Stocks, Options, and Futures. Fundamental Mathematical Concepts. The Geometric Brownian Motion Model of Price Movements. The Black-Scholes Formula. More on the Black-Scholes Formula. Binomial Trees. Basic Option Pricing with Binomial Trees. The Volatility Smile. Implied Volatility Trees. Implied Binomial Trees. Pricing Barrier Options in the Presence of the Smile.