Barrier option valuation in Python: exotic options and Monte Carlo with Johnson SU 

You can find the .ipynb for this video and some additional materials here: drive.google.com/drive/folders/1sP40IW0p0w5IETCgo464uhDFfdyR6rh7 Please consider supporting NEDL on Patreon: www.patreon.com/NEDLeducation

Now this is what I was waiting for...... Thank you so much for this informative video.

Hi, thanks for the clear example. However, the reason that your calls are undervalued and puts are overvalued is mainly due to the fact the stock price is forecasted here with returns observed in the 'real world' instead of in de 'risk-free' world. If I would sell a call option for the price in your example I can do an arbitrage by dynamically hedging the option with underlying apple stock an make a guaranteed profit without any risk.

Thanks for making the video Savva, I'll reach out to you within the week about a tutoring session

Thanks a lot sharing such valuable information!😊

Hi Savva, thanks for another great video!!! I have one small question, wouldn´t be better to use the adjusted closing prices? I alway thought that the adjusted prices are better indicator of the price change, is there disadvantages when using adjusted prices? Thanks in advance.

I'm confused..why didn't you use log returns for the goodness of fit test?

Hey Savva, would you be willing to change "Advanced" to "Barrier" in the title just so it's easier to spot when looking for it? Not a big deal if you don't want to. Or something like "Barrier Option valuation in Python: Johnson SU (4 parameters), Monte Carlo, and exotic options" It doesn't have to be exactly like that. I'm just trying to suggest that "Advanced" is uninformative. Johnson SU and Monte Carlo are more important and should be listed before the term exotic option (which I assume is a buzz word you included to help categorize these exotic option videos together when doing a youtube search). I also suggest noting somewhere 4 parameter or whatever term would be appropriate since you will be releasing my followup video on ARCD with 8 Johnson SU parameters within a couple of weeks. The suggested title is not intended to be taken as is, alter it how you see fit.