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Black-Scholes Option Pricing Model -- Intro and Call Example 

Kevin Bracker
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Introduces the Black-Scholes Option Pricing Model and walks through an example of using the BS OPM to find the value of a call. Supplemental files (Standard Normal Distribution Table, BS OPM Formulas, and BS OPM Spreadsheet) are provided with links to the files in Google Documents.
tinyurl.com/Bracker-StNormTable
tinyurl.com/Bracker-BSOPM
tinyurl.com/Bracker-BSOPMspread

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9 июн 2011

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Комментарии : 368   
@luis.jurado8021
@luis.jurado8021 2 года назад
10 years later and its still gold, watching this video before my financial derivatives final 🙏🏼😂
@mikej8678
@mikej8678 Год назад
Indeed, currently helping me with my ACCA AFM exam, good video
@navyman4
@navyman4 7 лет назад
Who else feels smart they understood this? Actually, all credit goes to Kevin Bracker. He did an excellent job!
@rezivillehulgado2497
@rezivillehulgado2497 6 лет назад
This was great, I have been researching "mispriced items law michigan" for a while now, and I think this has helped. Have you ever come across - Genubrey Mispriced Infiltration - (Have a quick look on google cant remember the place now ) ? Ive heard some pretty good things about it and my partner got excellent success with it.
@abbynyamima8460
@abbynyamima8460 3 года назад
Meeeeeeee am so proud of myself
@sudhindrak
@sudhindrak 7 лет назад
Explaining a complex subject in the simplest terms is not easy and this was very well done. Thank you Kevin!
@andrewmanundu2273
@andrewmanundu2273 Год назад
Thank you for the explanation
@romysinghsingh58
@romysinghsingh58 Год назад
Hi
@benvel2302
@benvel2302 2 года назад
Explained better than 99% of all university teachers in the world. Hello from Australia, thank you so much
@kevinbracker
@kevinbracker 2 года назад
Appreciate the feedback!
@casualseller2045
@casualseller2045 Год назад
Thank you
@aininaasdi9132
@aininaasdi9132 3 года назад
am watching this 10 years later and I understand the whole process a lot better. Love the simple explanation. Thank you Kevin!
@miyurinorris158
@miyurinorris158 6 лет назад
I have my final exam in corporate finance tomorrow, and I was just absolutely thrown by this concept. Thank you, SO much! You've managed to make this seem incredibly easy. I almost feel dumb for not understanding it initially.
@alexrozenbom3430
@alexrozenbom3430 7 лет назад
This series is probably the best on You-Tube for options pricing theory. Thanks Kevin !
@user-vw9ps4xm7b
@user-vw9ps4xm7b 6 лет назад
I was frustrated from frm's readings and now you clear all the doubts and ambiguities at once. You have earned my admiration and respect, sir
@pevolinchetty3860
@pevolinchetty3860 6 лет назад
The video explained the Black-Scholes Option Valuation Model exceptionally well. Really beneficial to newbies of this pricing model.
@MySuperfly7
@MySuperfly7 3 года назад
Every view you have is some kid somewhere who is absolutely stoked they came across your content. Saving my semester! Bracker 2020
@Aadilkhan-zz4qy
@Aadilkhan-zz4qy 7 лет назад
Goodness....... nobody can explain this way. Excellent job Kevin! Hats off to you. Thanks a lot. Didn't expected that I would found this much elaboration on the topic.
@annenglish9171
@annenglish9171 6 лет назад
This is a seriously great explanation. I've watched several videos on this topic today and none helped me to understand. Yours did. Thanks so much!
@hawkinsuhc
@hawkinsuhc 7 лет назад
I have never really had problems with any type of math formulas. I have had to work a little harder solving some moreso than others, however, I could never NOT solve them. Then came Black-Scholes. I was truly flabbergasted. Then I saw your tutorial and excel sheet. It is excellent. It walks you through everything! Thank you so much!!!
@financelife7211
@financelife7211 3 года назад
You are a total blessing to me, am studying financial risk management, black schools option pricing model...you can imagine how you have helped me understand the formula. Hug hugs
@abdirahmanagane2903
@abdirahmanagane2903 2 года назад
Black Scholes not school
@marysmith3710
@marysmith3710 Год назад
This is the absolute best explanation /lesson on Black-Scholes. Thanks a million.
@aniruud
@aniruud 11 лет назад
Got my Finance exam in a couple hours. You just saved my life! Thank you!
@yousefsafa5248
@yousefsafa5248 Год назад
Great video series on Black-Scholes. Took the mystery out for me.
@lokironin6934
@lokironin6934 8 лет назад
Not all Heroes wear capes! I sincerely thank you for this explanation. Best wishes
@changeme454
@changeme454 5 лет назад
Person like you should teach in the university, who can make most difficult issue easy. My FM prof. still doesn't give any real world example regarding option pricing but you are genius. my admiration and respect for you.
@anneshaneogy3042
@anneshaneogy3042 4 года назад
I cannot CANNOT thank you enough, sir. I am indebted . May you live a thousand years and more.
@kevinbracker
@kevinbracker 4 года назад
Thank you
@Herrio
@Herrio 4 года назад
Wow. This was excellent. I used the Black-Scholes online calculator and then used this and I got the same numbers. You are a phenomenal educator!
@goruloveguy
@goruloveguy 8 лет назад
I have no words to express my thank you . These videos have saved my harvard days of investment class
@texan4958
@texan4958 3 года назад
Who goes to heaven? Kevin Bracker or me? This is outstanding. Thanks for taking your time for us sir.
@jonassteinberg3779
@jonassteinberg3779 11 лет назад
I'm so glad you posted this clear and concise demonstration of the BSOPM. As a math major, I had always been curious about this model because my friends in the financial mathematics program were always talking about how fundamental it was to their studies. Now that the BSOPM is demystified some I don't feel as intimidated by it as when I knew nothing of it, a similar experience as when another youtube video demystified Fourier series calculations for me. Thanks!!!
@MinerMetinAKTAN
@MinerMetinAKTAN 6 лет назад
Using spread sheet and norm table are very useful to understand the main point. Thanks Kevin!
@CosmicBarrilet
@CosmicBarrilet 12 лет назад
Thank you Kevin,.... i was studying with "Maths of Financial Derivatives " and your video are strong complement....
@paradoxdea
@paradoxdea 3 года назад
Thank you Kevi , for expertly explaining this viable concept. You're very intelligent, so I know that I can learn valuable tips from you. You just earned a new subscriber!!
@KatzeMuffelLebt
@KatzeMuffelLebt 2 года назад
Very nice explanation, slow and patiently, always going back to the formula and explaining _every_ step. Nice video, thanks
@vrl9037
@vrl9037 3 года назад
I have an exam on this tomorrow. This video was excellent, thank you!
@Eshiemokhai
@Eshiemokhai 10 лет назад
Great video. Your explanation has improved my understanding of this topic. Thank you
@drexelbrown9519
@drexelbrown9519 6 лет назад
Thank you for explaining option pricing with Black & Scholes!
@jamesrodriguez7953
@jamesrodriguez7953 9 лет назад
So helpful !!! tnx, this example let me finish my eternal homework in no time :D
@walterkabeo7563
@walterkabeo7563 4 года назад
This was awesome...I now understand BSM-OPM..Many thanks to Kelvin
@sandeepminhas6491
@sandeepminhas6491 6 лет назад
Wow great video and very clear information. Was having some problems with the formula but you make the whole formula seem very easy. Your method is also different to the way my lecturer taught us however I much prefer yours. Thanks again!
@thebookwasbetter3650
@thebookwasbetter3650 Год назад
Had an accounting professor who used the 'chalkboard method' of teaching where you write it out instead of using power point presentations (of which there are way too many of in business school.) When you write it out, it really does feel like you are with the professor the entire time. Like your minds are one.
@christopherhamilton8475
@christopherhamilton8475 7 лет назад
Kevin did an excellent job. Thank you, sir!
@timwilliams4124
@timwilliams4124 Год назад
Wow.. This was very helpful. I never understood what "e" or "ln" was or how to calculate it until now! Thank you!
@kevinbracker
@kevinbracker Год назад
You're welcome.
@casalonijain24
@casalonijain24 5 лет назад
Amazing explanation. I was struggling to understand BSM. But it cleared all my doubts. Thanks. 🙂
@dineshsiva2491
@dineshsiva2491 3 года назад
really wish you were my uni lecturer, saw this after struggling to understand my lecture even after watching it like 5 times
@walterpinto879
@walterpinto879 8 лет назад
Very Clear Explanation! Thank you for the videos, and continue to this videos. Thanks You explain very well, clear and slowly! Great. Thanks
@svenskfox
@svenskfox 9 лет назад
Very helpful. I have an exam coming up on the BSOPM and this definitely helped me practice. Thanks!
@brightsidenewsteam
@brightsidenewsteam 11 лет назад
Thank you Mr. Bracker! You explained everything really well. Good work!
@hamdiabdi9181
@hamdiabdi9181 3 года назад
this was so helpful i finally understood you're a great teacher ! thank you
@Asmrani1974
@Asmrani1974 Год назад
Super Excellent . Thanks Kevin for this valuable lecture
@MrTapesh123
@MrTapesh123 8 лет назад
Hey, THank you so much for explaining this in a clear manner. Really helps... Please post more videos I love your teaching style
@abc33944
@abc33944 3 года назад
Using a real life example was very helpful .. thanks !
@juanarias701
@juanarias701 4 года назад
I ended up understanding a lot more with video, thanks for posting Kevin.
@alefkm
@alefkm 11 лет назад
omg thank you very much. This video was way more (really much more) useful than the two hours with my university professor who cannot explain anything right
@beesnumber1
@beesnumber1 10 лет назад
Your videos are great!!! Thanks for making them.
@karim1268
@karim1268 6 лет назад
Great job explaning a very complex subject!
@derekdj6790
@derekdj6790 5 лет назад
This has done me well, thank you very much.
@thefuckingpearl
@thefuckingpearl 2 года назад
Such a brilliant explainer!! Subscribed and liked immediately 👏
@exhawkstead2440
@exhawkstead2440 Год назад
you literally saved my life with this thank you so much
@kevinbracker
@kevinbracker Год назад
I hope you're using the term "literally" to imply "figuratively" or the BS OPM is even more powerful than suspected! 🤣🤣
@DrBre-zk7ge
@DrBre-zk7ge 8 лет назад
Wow exceptional video, really really well explained and at a very at a perfect speed. Thank you
@JPearson1987
@JPearson1987 10 лет назад
Thanks. Been reading a few books on the related so good to see it can be broken down to be less daunting.
@harryknickerbocker9889
@harryknickerbocker9889 4 года назад
Excellent presentation. Once you know the SD and the variation, you can actually covert these numbers into a standard normal distribution. Then, using a z score, you can see the probable outcomes. The model is using variation (volitility and risk) as a measure of probable outcomes.
@bcmukherjee1935
@bcmukherjee1935 2 года назад
Explained very well,thanks.
@r_CBA
@r_CBA 2 года назад
What an excellent video. Many thanks.
@HoangDuong-mi4ow
@HoangDuong-mi4ow 3 года назад
Great explanation sir. Thank you!
@NikhilSingh-qr4wk
@NikhilSingh-qr4wk 10 лет назад
Your video is fantastic, makes it easy to understand options pricing. Thanks a lot
@ElBellacko1
@ElBellacko1 2 года назад
You explain it good, im glad I found this video thanks 😊
@LuisJimenez-si3le
@LuisJimenez-si3le 2 года назад
Hey, Kevin! Thanks a lot for the file. Everything is clearer thanks 2 U!
@kevinbracker
@kevinbracker 2 года назад
You're welcome...glad it helped.
@parthbhanushali9382
@parthbhanushali9382 4 года назад
Amazing video loved the explanation waiting for more such videos !
@madmuke
@madmuke 11 лет назад
Wow you did in 13 mins what my 400 level college Instructor couldn't do in 3 hours :)... great job sir
@ahmedonian
@ahmedonian 12 лет назад
Thank u. I owe u big part of my HW grade. 😊
@vishalkanojia9634
@vishalkanojia9634 3 года назад
At 11:08 when I saw the formula it didn't looked scary anymore n I felt like this is easy🙏🙏😍.. You are really amazing.
@summerchen1912
@summerchen1912 5 лет назад
its very helpful, you made everything so clear, thank you a lot!
@fifihei
@fifihei 8 лет назад
Excellent example for exam review. Thanks!
@bongsmzayiya2646
@bongsmzayiya2646 3 года назад
you are a star indeed. God bless you more
@eviesyd
@eviesyd 11 лет назад
thanks for the throughly explanation.great job!
@classic_petter
@classic_petter 3 года назад
Damm teacher I read 2 chapters of this in my book and I didn’t understand nothing, now all the things seems to easy with the video....thanks 🙏
@yopieputra3783
@yopieputra3783 7 лет назад
I hope you are my lecturer, thanks for the video!
@davidwatkins7417
@davidwatkins7417 7 лет назад
YOU rock BRO!!!!!! I love Finance!!!! Kepp it coming!
@geldersbart3108
@geldersbart3108 3 года назад
OLD but GOLD!
@karthiksmooth
@karthiksmooth 8 лет назад
Very Clear Explanation .. Thank you for the Videos
@alikhalil9728
@alikhalil9728 Год назад
You are the best. Ali khalil lawyer from Lebanon
@gauravjain7355
@gauravjain7355 6 лет назад
Thank you so so so much. On Teachers day in India I wish you a very happy Teachers day. I understood black Sholes just coz of this video.
@kevinbracker
@kevinbracker 6 лет назад
Thanks!
@parthbhanushali9382
@parthbhanushali9382 4 года назад
I really like the video . 😄 a very simple style of teaching and teaching students . Thank you for the video
@isurusenevirathne
@isurusenevirathne 3 года назад
Clearly explained every steps
@gusinthecloud
@gusinthecloud 2 года назад
Excellent Teacher!!
@briananyanwu101
@briananyanwu101 5 лет назад
Excellent walk through
@arunimasethunath9548
@arunimasethunath9548 4 года назад
Great explanation . Thankyou!!😍😍
@shahriarmaher
@shahriarmaher 8 лет назад
Thank you sir! Life Saver, really!! :D
@konradkuhne3126
@konradkuhne3126 5 лет назад
Incredible explanation. Thank you very much! Finance student from Thunder Bay, Ontario.
@akhilesh7851
@akhilesh7851 2 года назад
Thank you so much Finally understood!
@akhiltrader6298
@akhiltrader6298 7 лет назад
Thank you Kevin !!! Excellent video !!!
@Bajtlife
@Bajtlife 7 лет назад
Akhil Trader you can add or remove Greeks by right clicking the top of the column [where it's says alpha , beta, pnl etc)
@asdfasdfasdfsdfasdf8812
@asdfasdfasdfsdfasdf8812 8 лет назад
you just saved me so much time, thanks
@jakubunold5750
@jakubunold5750 4 года назад
Thank you! Finally understood!
@yogia2933
@yogia2933 7 лет назад
This is amazing man!!!! Cheers mate
@doeverythinginlife
@doeverythinginlife 13 лет назад
never seen a simpler video on BS OPM:)
@rupeshrazzpurohit9790
@rupeshrazzpurohit9790 5 лет назад
thank you so much Sir I would like.to thank you because.i understood easy of that concept ...love u lots from india...😍🇮🇳
@Nickiller6969
@Nickiller6969 10 лет назад
Super clear. Thanks a lot!
@sudhirpatil3434
@sudhirpatil3434 3 года назад
Nicely explained!
@victoriaolatuga1304
@victoriaolatuga1304 5 лет назад
you made me understand this with ease thank you so much
@claytonchaparadza1334
@claytonchaparadza1334 8 лет назад
Thank you multiple times, i am saved
@rabiyaijaz648
@rabiyaijaz648 Год назад
Oh man im so grateful for u
@yellowseedkeke
@yellowseedkeke 2 года назад
Thank you, love from 🇮🇳
@lovecoley1765
@lovecoley1765 8 лет назад
THANK YOU SOOOOOO MUCH, you saved my homework tonight.......!!!!
@vlKenzo
@vlKenzo 8 лет назад
+FRUIT Til FIVE What class is this for? I am a senior in high school, and this application of calculus is very interesting to me.
@lovecoley1765
@lovecoley1765 8 лет назад
+vlKenzo Investment Analysis 👍🏽
@invasset
@invasset 12 лет назад
Thanks for such clear and simple explanation
@sokha55
@sokha55 7 месяцев назад
The most practical one compare to other explanation and examples
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