Whether you want to trade options, learn how stock options are valued, learn about stochastic modeling, see how stochastic calculus works or are studying quantitative finance, the stock option simulator makes it easy for you to learn what you want to learn and much, much more.
The Shockwave movie on this page gives you a quick introduction to stock options and to option-pricing theory. It shows you the kinds of simulations you can run interactively with the simulator.
The book explains principles and shows you how to use the simulator to illustrate those principles.
In the simulator, change the stock’s volatility forecast, the stock price, the stock’s expected return, the option’s strike price, the option’s time to expiration, the stock’s dividends or the risk-free rate. Click some more buttons. See how potential option payoffs change. See how and why the option’s value changes.