Deep Dive: CFA® Level I Prep 2026

DERIV - Pricing and Valuation of Options

Jul 6, 2025 · 15 min · Season 7 · Episode 8 · 15.1 MB
0:00-15:32

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Break option value into intrinsic and time components, test moneyness, andstudy six core inputs (spot, strike, time, rate, volatility, income). Use arbitrage andreplication arguments to bound fair prices before jumping into models later.