Modeling Financial Options with Monte Carlo Simulation - ERP Spain.com - España y América Latina

Options are financial derivatives widely used for hedging or leveraging investment positions. They are contracts that give the buyer the right to buy or sell a specific financial asset at a specified price and date, and are typically connected to financial instruments such as stocks and commodity futures. Besides the standardized options contracts traded on stock exchanges (calls and puts), options can also be traded over-the-counter (OTC) or embedded into regular contracts between companies - usually including custom clauses, that give rise to exotic options who need to be priced correctly. This webinar will present a hands-on example of how to use @RISK to model financial options such as calls, puts, and exotic options, including the simulation of the underlying asset and the effects of uncertainty.