Nice tutorial on how to do matrix operations in Excel - by William Sharpe!

3 series article by Sacha Barber.

Editor: Anatoliy Malyarenko, M

Peter Forsyth
Contents
1 The First Option Trade 3
2 The Black-Scholes Equation 3
2.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.2 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.3 A Simple Example: The Two State Tree . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.4 A hedging strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.5 Brownian Motion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.6 Geometric Brownian motion with drift . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.6.1 Ito

Dmitrii Silvestrov
Henrik J

Easy step to do options trading. How to make stable profit with option trading. Read the full tutorial on stock options. Everything you need to know about free level 2 quetes and quadruple witching.

An example based approach to all aspects of quantitative finance including sample code and worked examples.

Several papers published by Derman

A guide to the make-up of dispersion trades by FDAXHunter of Capital Structure Demolition, LLC.

We are developing resources for the equity derivatives world. We hope that you find these useful.