Corporate Finance Institute
Pricing Options and Option Sensitivities

## Overview

### Pricing Options and Option Sensitivities Overview

In this course, we focus on valuing options using three pricing models: Black-Scholes, binomial, and the Monte Carlo simulation. Starting with the Black-Scholes model, we break it down and simplify the complex formula to ensure each and every component is understood. We then move on to learning the fundamentals of the one-step binomial model before progressing to additional steps. Finally, we look at the Monte Carlo simulation and show how it can be created in Excel. Our last module in the course focuses on option Greeks, which measure the sensitivity of an option price relative to a change in different variables.

### Pricing Options and Option Sensitivities Objectives

Upon completing this course, you will be able to:

• Identify the drivers and key inputs required for different option pricing models
• Use Excel to estimate an option value using multiple option pricing models
• Explain the Greeks and interpret the different values of each
• Calculate the option price given changes in factors such as volatility, price of the underlying asset, and time

### Who Should Take This Course?

This course is great for anyone interested in enhancing their understanding of derivatives and may be deciding to work in a role where the knowledge of options is expected or appreciated.

### Pricing Options and Option Sensitivities

5

Level 5

Approx 3h to complete

100% online and self-paced

Lesson
Multimedia
Exams
Files

## This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

### Capital Markets & Securities Analyst (CMSA®) Certification

• Skills Learned Trading strategies used in the finance and capital markets
• Career Prep Work in capital markets, whether on the buy-side or the sell-side

## What Our Members Say

Excellent course to apply the prior learned knowledge
Totally worths the time invested and effort.

#### Carlos Quitl

Beautiful
I found this course very engaging, with clear explanations and examples. The three options pricing models covered: the Black-Scholes for non-dividend paying European style call options, the Binomial option pricing model and the Monte Carlo Simulation. Lastly covered the Greeks options sensitivities. It was an amazing learning experience.

#### Linda Etuhole Nakasole

sectioned options and detail view
Everything you need to know to calculate price variations for options!

#### Romeo Florea

What are the requirements to take the courses?
All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements
Can I download the Excel files and financial modeling templates for the course?
Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.
How long do I have to complete the courses?
You will have yearly access to the courses as long as you maintain an active subscription. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.
Are CFI courses officially accredited?
Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.
Are there any additional fees or costs?
None! The bundle price includes everything and there are no additional fees or charges to earn your digital certification. You can see our enrollment fees listed here.
What currency are your courses priced in?
All our online courses are priced in USD. As this is a recurring payment, we accept all major credit and debit cards including Visa, MasterCard, and American Express.
How do I earn my certificates?
Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.
How are the exams conducted?
Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment
Can I email the instructor if I have questions?
While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.
Will these courses help me advance my career?
Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.
More Questions?
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