Session 9: Introduction to Option Valuation

In this session, I set up the process for valuing assets with cash flows contingent on something happening, and use that process to lay out the basics of option pricing models.
Slides: www.stern.nyu.edu/~adamodar/pdfiles/FoundationsOnl…
Post class test: www.stern.nyu.edu/~adamodar/pdfiles/FoundationsOnl…
Post class test solution: www.stern.nyu.edu/~adamodar/pdfiles/FoundationsOnl…