Pricing Options to PROFIT!

Welcome back! Pricing options using pricing models in finance is a very complex and niche skill. It requires many inputs and careful assumptions in order to be valid. Nonetheless, options pricing can allow any investor to develop an edge by knowing the theoretical true and fair value of any option contract so that we know when it is over or undervalued relative to the spot market. We cover five different pricing models in this week's video, none of which is perfect and all of which can provide important insights into the derivative markets. Hope you enjoy this one and until Tuesday...Jay