Volatility: Financial Maths Part V
Volatility has been described in recent times as being "one of the most important risk indicators that is available to market participants and observers". The delivery of targeted returns with low volatility may be the hope of all investors, but is not always a reality. This pathway will provide insight into the best models to understand volatility.
Pathway
CPD credits earned
Certificates
Watch all the videos and pass the test to obtain a certificate showing your completion of this Pathway. Certificates can be shared directly to your LinkedIn profile and social media accounts.
9 videos • 43 minutes
Volatility (1/4): An Overview
In this video, Abdulla provides an overview of volatility - a term that is associated with the magnitude of movements in price of an asset over time.
Abdulla Javeri • 05:42
Volatility (2/4): Measurement
Volatility can be measured for any period. In this video, Abdulla explains the two ways to convert from one period to another.
Abdulla Javeri • 04:34
Volatility (3/4): Risk Management Example
In the third part of Abdulla's series on volatility, Abdulla will work through an example of the use of volatility in the area of risk management. For this video, viewers will need to be familiar with cumulative distribution functions and z-scores.
Abdulla Javeri • 03:58
Volatility (4/4): Option Pricing Example
In this final video of the series on volatility, Abdulla demonstrates the use of volatility in option pricing. No prior knowledge of options is required.
Abdulla Javeri • 03:26
Monte Carlo Simulation (1/2)
Abdulla explains the significance of the Monte Carlo Simulation: what it tries to achieve and how it works. In so doing, Abdulla provides an example using an excel spreadsheet.
Abdulla Javeri • 04:52
Monte Carlo Simulation (2/2)
In the previous video, Abdulla explained how Monte Carlo is a way of modelling a probability distribution of returns or prices. In this video, Abdulla examines the nature of stock returns to come up with a formula that can be used in Excel to simulate the price paths.
Abdulla Javeri • 05:09
Option Pricing Without Black-Scholes: An Intuitive Approach (1/2)
The Black-Scholes Merton option pricing model is the Nobel Prize winning formula that is used as the basis of pricing options. In this video, Abdulla will discuss option pricing without Black-Scholes and in doing so it will provide hints to understanding the more complex area of option Greeks which will be covered in the second video on this topic.
Abdulla Javeri • 05:08
Option Pricing Without Black-Scholes: An Intuitive Approach (2/2)
In the first video on this topic, Abdulla discussed option pricing without using the Black-Scholes model but left a few unanswered questions. In this video, Abdulla will cover those remaining questions relating to the appropriate probability distribution to use, the volatility of the asset, how far away the spot is in relation to the strike, the forward price and the time to expiry.
Abdulla Javeri • 05:12
Portfolio Volatility
In this video, Abdulla outlines the importance of monitoring portfolio volatility risk and the way it is calculated for a two asset portfolio, and a three stock portfolio.
Abdulla Javeri • 05:39
Other Pathways you may like
Why top finance institutions choose us?
Expert
Unlock the expertise of over 100 genuine industry leaders
On demand
Access courses wherever and whenever, through our cutting-edge platform
Focused on finance
All of our content has been created specifically for finance professionals
