No video :(

Implied volatility | Finance & Capital Markets | Khan Academy

Подписаться 9 млн

Просмотров 264 тыс.

50% 1

Courses on Khan Academy are always 100% free. Start practicing-and saving your progress-now: www.khanacadem...
Created by Sal Khan.
Missed the previous lesson? Watch here:
www.khanacadem...
Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head.
About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.
For free. For everyone. Forever. #YouCanLearnAnything
Subscribe to Khan Academy’s Finance and Capital Markets channel: / channel
Subscribe to Khan Academy: www.youtube.co...

Опубликовано:

6 сен 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 69

@poisonpotato1 6 месяцев назад

Isnt that self referring. The market is paying that C because the formula told them to price it at that C.

@mikediscipleofJesusChrist 9 лет назад

finally I am done with macro-economics, micro economics, and finance.... 440+ videos in 6 months....

@diversified170 4 года назад

is it worth to take ?

@JoshuaNgMusic 4 года назад

How does that materially impact your life?

@LaFacedera 3 года назад

How can you process so much information in 6 months lol After 3 years I'm still studying micro, macro, finance and econometrics.

@wenzhaowei6008 4 года назад

Believe it or not, your explanations are 100 times more explicit than my professors. Thank you !!!

@akhileshverma1629 5 лет назад

in thumbnail it shows "implied colatility"

@tigeruppercut7 11 лет назад

Can you make a video on options pricing models? For example, using binomial models. You can't do American options and dividend options as accurately with black scholes. You can also simulate the implied volatility with models.

@khanta7769 3 года назад

He keeps saying if I have these 6 inputs, but there are only 5 inputs to derive the 6th value. The 5 inputs are Stock px, Strike px, Time, Risk Free Rate, Volatility, the output is Options px.

@thomasscoville1148 4 года назад

this is awesome. Skilled communicator. So scarce on RU-vid. Thank you!!

@HKHasty 5 лет назад

Isn't the logic of calculating volatility from B.S. formula circular? Options traders will make an assumption about volatility. An option's price is calculated accordingly. Then stock traders will use the option price to back-calculate volatility.

@M4rtingale 11 лет назад

Yes, the variables d1 and d2 are derived from the geometric Brownian motion which is lognormally distributed.

@souravkamilya3129 10 лет назад

Your videos are realy helping people understand the fundamentals of Finance ..Thanks!!

@johnjacobs6234 4 года назад

Is there any way to estimate volatility, then run it through Black Sholes to get the real value of the option?

@solsolomon 3 года назад

Thank you. Finally a good explanation of how this number is calculated.

@ForestFolk_ 22 дня назад

Great explanation, thanks

@DannyJaraMusic 4 года назад

I’ve been looking exactly for this and you explained it neatly, thanks 👍🏼

@enteradj 4 года назад

People trade options on implied volatility, does that mean that implied volatility would have its own implied volatility?

@HelterMcSkelter 11 лет назад

0:21 I know this is pedantic, but... you only listed 5 things, mate. :D

@bipra7682 Год назад

The only channel that never disappoints

@jm7476 Год назад

Hi everyone, can someone ask this important question ,please ?: If you buy a call/put option that only has intrinsic value, then you can almost forget about Theta an IV because the option price movement will not be affected by them? is that right? : Theta and IV only applies to the extrinic value part and not to the intrinsic value part of the price of the option? Else, if you buy a call/put option with both intrinsic and extrinsic value, but, the amount of intrinsic value is bigger than the extrinsic value , you can only lose money if your option ends OTM?I mean, even if end up losing all the extrinsic value, because your option ends ITM (you get right the direction of the stock movement) , still has intrinsic value (and bigger than the one it had when you bought it) You can only lose (because of theta and IV) the extrinsic value part , not more than that? Thanks in advance

@TheChawamushi 4 года назад

To put it in very raw term, can we say that what IV is, is actually the premium which markets pay for the option. This is derive by getting the market price of the option and minus the knowns (Stock Price, exercise and etc). By doing so, we also will be able to figure out if market is paying more or less for a given assumption on volatility (assuming we have one). And basically we are trading the premium of the option? Suppose everything else stays constant.

@vicentecfn 4 года назад

Great video.

@user-pm4kc5br1f Год назад

I know all the parameters except for the implied volatility and the price of the call option, is it still possible to use the Black-Scholes model to determine the value of the implied volatility?

@hellotrading3245 11 месяцев назад

What actions we can take based on greeks values ? Are there any channels that share that ?

@SH-of2wp Год назад

I have a doubt,What about the call option price in case of OTC . Here we don't know how much price call option is trading in the market....do we need to match with similar options on exchange?? Else we have two variables and can't solve for implied volatility.

@Gogargoat 11 лет назад

Doesn't black scholes assume normally distributed log returns?

@vaibhavvatkar 11 лет назад

Can you tell what is delta neutral strategy?

@Sofi8007 6 лет назад

I have here exercise that says"get closer to the implied volatility by using the two steps of the secant method" ..... how do you start with that?

@davidsweeney111 11 лет назад

Can we discuss the Greeks please?

@Ran-bb3lk 11 лет назад

Please Please continue!!!!!!!!

@-ADK- Год назад

This vid was helpful going to attempt the code

@guillermoguijarrorodriguez252 6 лет назад

thank you very much, your videos are really usefull

@nononnomonohjghdgdshrsrhsjgd 3 года назад

Hi, thank you for the explanation! Can you show why d1 is the conditional probability of how deep in the money the europ. call is? I mean, in the form of standardized Z-value of normal distribution, derived from a lognormal (in the usual form of x minus mean/stand. dev.).

@quantstyle6448 4 года назад

NOTE: The market does not say the correct price. The price comes from the exchange of money between investors. The market price is a reflection of the exchange of money between investors--the Ponzi process.

@vincentiPad 3 года назад

excellent video brother. finally understand how they calculate IV!!! I love you!

@dineshagarwal5555 7 лет назад

Sir can u please solve a complete question on black Scholes model... Or can anyone tell me here that how N(d1) = N(. 50327) =.6928?

@lakshmanmohanlanka9334 3 года назад

Normal distribution formula, integration -inf to x e power -t^2/2 dt.

@TheSwagKING111 11 лет назад

This helps so much. It makes everything so much easier.

@aniketalinge461 4 года назад

Is exercise price means amount of premium paid??

@simcityz 4 года назад

Strike price and exercise price have both the same meaning it is the fixed price or amount of cash that you pay to counterparty as a call option holder in exchange for receiving the stock from the counterparty if you decide to exercise the option. If you are put option holder then exercise price guarantees the amount of cash you receive from counterparty in exchange for giving your stock to counterparty if you decide to exercise the option. Premium is the price that you must pay intially to counterparty in order to receive this insurance and right but not obligation to exercise the option if it is beneficial to you. Thus, the premium is the price of creating the contract (option) between insurance buyer (option holder) and insurance seller (option writer) and it is paid from buyer to seller. It is easier to understand it when you think about normal insurance company that collects payments (premium) from you intially in order to establish the insurance contract between you and the company. Then you receive the insurance that protects you from unfortunate events. The insurance company is obligated to fullfill their side of contract e.g. recovering certain amount of costs related to damages. However, if you do not need/use the insurance then the insurance company keeps your initial payment (premium) as a profit. Similar logic applies to derivatives markets and options with some practical differences of course.

@thegodpill9696 4 года назад

I can identify the consistency everyone is missing, the stock price change in % and consistent time to expiration, and consistent back log the equally change in % to strike price will be worth the same amount every time.

@amanlalshrestha4204 4 года назад

I love you Khan Academy!

@Ivan-fp9lq 3 месяца назад

What is risk free interest rate ?

@mikejewell8518 29 дней назад

Just think of it as the interests rate on an U.S. Treasury Bill/Bond/Note. It's risk free in the since that there is basically no chance of you not getting that specified return on your investment. Technically there are no risk free interest rate investments but T-bills are the closest example

@Wielorybkek 2 года назад

Finally I understood this concept! Thanks!

@SH-of2wp Год назад

@benjaminkaarst Год назад

Nive cideo!

@Hebatjodi 11 лет назад

Thanks

@klaasklapsigaar 11 лет назад

Nice vid, maybe you can do a video about the Heston-model and also about changing risk-neutral and real-market probabilities.

@StillStealSteel 2 года назад

mind blown!

@amanlalshrestha4204 6 лет назад

amazing amazing video !!!👏

@apigtooter5727 3 года назад

6 inputs or 5?

@alijalloul122 Месяц назад

11 years later, the thumbnail title is still implied colatility

@mikejewell8518 29 дней назад

12 years later and I still watch Khan Academy videos

@georgeofhamilton 3 года назад

The thumbnail says "Implied colatility."

@tiago_holanda Год назад

In the video's tumb its written 'Colatility', with C, LOL

@Dortolevi 11 лет назад

more i want more to learn

@Lauderdalesfinest954754 11 лет назад

Sounds Like Futures..

@JC-qq9sw 3 года назад

IV crush

@ColocasiaCorm 2 года назад

colatility

@octam5409 4 дня назад

Bro this video has been up for 11 years and the thumbnail is still misspelled ….do you even care ??

@stephaton1835 7 лет назад

These five things... learn how to count...

@julienraffaud5110 6 лет назад

he says everything twice??

@millenialmusings8451 9 месяцев назад

Ones off there main reasons I don't watch Khan academy videos is because the speaker sal Khan repeats every sentence 2-3 times. Is really irritating to listen. No wonder his videos have such a low likes to views ratio