Valuation of options

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Because the value of options contracts depend on a number of different variables in addition to the value of the underlying asset, they are complex to value.

There are many pricing models in use, some of them are as following:

v • d • e Derivatives market
Derivative (finance)
Options	Terms: Strike price · Expiration · Open interest · Pin risk Vanilla options: Option styles · Call · Put · Warrants · Fixed income · Employee stock option · FX Exotic options: Asian · Lookback · Barrier · Binary · Swaption · Mountain range Options strategies: Covered call · Naked put · Collar · Straddle · Strangle · Butterfly Options spreads: Bull spread · Bear spread · Calendar spread · Vertical spread · Debit spread · Credit spread Valuation of options: Moneyness · Option time value · Put-call parity · Black-Scholes · Black · Binomial · Simulation
Swaps	Interest rate swap · Total return swap · Equity swap · Credit default swap · Forex swap · Currency swap · Constant maturity swap · Basis swap · Volatility swap · Variance swap
Other derivatives	Credit derivative · Equity derivative · Interest rate derivative · Inflation derivatives

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Category: Options

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