Dakota State University
BUS 418 Financial Futures & Options
Spring 2001

Class Notes
Chapter 13 and 14

All notes are in Word format.

Transparency Number	Title
1, 3-6	Binomial Option Pricing Model and handout
2	The One-Period Pricing Model. Also see Fig. 13.1
7, 9, 17-21	The Black-Scholes Option Pricing Model including Option Sensitivities
8	The Two-Period Binomial Model. See Figure 13.2
10	Lognormal and normal distributions, Figures 13.5 and 13.6
11	Standard normal probabilities, Appendix B, p 784
12	The Standardized Normal Distribution
13	Chart of Normal Probability Distribution
14	Shaded area represents N(x)
15	The Black-Scholes Model, see pp. 396-397
16	An alternate representation of the model

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