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Option Contracts and Their Valuation

Conroy, Robert M.; Harris, Robert S.; Schill, Michael J.

F-1519 | Published February 5, 2007 | 9 pages. Technical Note

Collection: Darden School of Business

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This note provides an introduction to financial option contracts. It includes an overview of the terms associated with options, showcases option payoffs and payoff diagrams, and explores the mechanics of the Black-Scholes valuation method. At the University of Virginia Darden School of Business, it is taught in the “Valuation in Financial Markets” elective course and would be suitable in any module exploring option contracts.

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