Option Pricing and Trading

Instances and examples of a range of exotic contracts such as Digital, Barrier, Asian (as well as Bermuda and Mid-Atlantic), Lookback, Quanto, Compound option, chooser options, Ladder and Shouts. All variations on contracts that allow a customer to do a hand full of things that we'd addressed earlier such as adding yield, limiting downside, providing structured protection, and reducing cost.

Follow Jawwad online as he teaches Risk Management to a group of MBA students in Dubai. Other than attending classes, review the lecture notes and study guides, play with the data used in the in class exercises and take Quizes and assessment to test your knowledge of risk management

An intuitive understanding of N(d2) using a simple way for deriving N(d2). Required reading for understanding the difference between N(d1) and N(d2).

A step by step approach to building Excel spreadsheets that shows how delta hedging options works using Monte Carlo simulation.

Delta, Gamma, Vega, Theta & Rho. Rather than focus on formula and derivations, we focus on behavior, pretty pictures and colored graphs.

Option Greeks. Four step lesson plan for Option Hedging using Excel. We hedge Gamma & Vega using cheaper out of money options using Excel Solver

The challenge with this part of the language lies partly with the terminology (a range of Greek symbols), partly with the presentation (partial differential equation), with calculations (a combination of Greek symbols and partial differential equations) and with interpretation (can you please say that again in a language that we can all understand).

Potential Future Exposure. Calculation case study and  illustrative example for PFE for a  simple Interest Rate Swap.