Investment Strategies for Financial Derivatives

This bachelor thesis deals with various methods of valuing options. First, the basic definitions and relations concerning options are introduced. The second part is focused on Black-Scholes and binomial model and the relation between these models is proved. The Cox-Ross-Rubinstein and Jarrow-Rudd methods are introduced as well as the approximate versions of these methods. The numerical part consists of applying aforesaid methods on data using software Mathematica. The strengths and weaknesses of these methods are described and outcomings are compared with thesis of Hull (2012) and Shaw (2002). Powered by TCPDF (www.tcpdf.org