Evaluation des options financières : revue de littérature et explication intuitive des méthodes de calcul

Lahrech, Mohamed Taha and Benabdellah, Majid and Dehhaoui, Mohammed and Benchekroun, Fayçal (2018): Evaluation des options financières : revue de littérature et explication intuitive des méthodes de calcul. Published in: Revue Economie Gestion et Société No. 15 (June 2018): pp. 1-24.

Abstract

This paper provides a qualitative explanation of the more common financial European options pricing models, namely the Black-Scholes formula, Monte Carlo simulation and the binomial model. The first part is a general introduction to the concept and types of financial options. The second part discusses the variables that determine option prices and gives a conceptual view on the Brownian motion process as a mother-assumption of the aforementioned parametric methods. Finally, the article explains the logic of these three methods, in the purpose to share another way of understanding the financial options models from a qualitative perspective.

• Item Type: MPRA Paper
• English Title: Evaluation of financial options: literature review and intuitive explanation of the calculus methods
• Language: French
• Keywords: financial options, Brownian motion, Black-Scholes, binomial model, Monte Carlo
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill

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