tastytrade explains how the Black-Scholes model assumes that underlyings move according to a geometric brownian motion. Other option pricing approaches use discrete approximations to geometric…

http://www.kanjoh.com. disclaimer – none of these videos is meant to be personalized financial advice.

28 Responses to “Advanced Derivatives: Geometric Brownian Motion and Option Trading..”

  • Kyle Snoxell:

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  • supermankelly2:

    Lol hedge risk.. riiight. Lol. Its OK a found a video aimed at someone not already in finance, zip nada.

  • Spakid Shari:

    Simplest way for you to understand.. a derivative is a way to hedge risk. (Types of this are futures, swaps and options)

  • roland king:

    I just dont see where people are getting caught up! lol

  • roland king:

    Exactly!

  • roland king:

    its ok @supermankelly2 . its not for everyone. lol. Nothing makes me happier than derivatives

  • ThrashAbaddon:

    where is the fuckin mathematics?

  • supermankelly2:

    Didn’t even get passed ‘What is a Derivative’ part. This not for someone who knows nothing of finance.

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  • karan sandra:

    Thank you.

  • saira fazal:

    very well explained
    thank you

  • AvangionQ:

    Ah, financial derivatives ~ wall street betting on bets that bet on other bets while insuring all those bets to attempt to mitigate failure. At its heart, its a really complicated way to inflate failure bubbles that screw almost everyone out of hard earned money when the mitigation of failure exceeds critical mass ~ see the 2008 financial crash, as well as the current euro crisis.

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  • pavan mutha:

    excellent…

  • gsandy1988:

    Thanks a lot .. It was very easy for a non financial person like me to understand it .. :)

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  • Meghna Kathiriya:

    it was good n also simple to understnad ….
    thnks…

  • KingKiaJames:

    Great explanation!

  • Cedric Ranginohoora Tunaho:

    kucken dick heads the lot of you

  • PissedFechtmeister:

    Isn’t money itself a derivative?

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  • Nitesh Kumar:

    great Work – kepp it up

  • YDellMe:

    Actually, derivatives can be replicated by underlying in a complete market. So why they still exist despite they can be made redundant??

  • stilgottheblues:

    Nice work. Excellent day…

  • atiq rehman:

    very well taught

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