Finance School of management Chapter 15 Contents How Options Work Investing with Options e The Put-Call Parity relationship Volatility option Prices Two-State Option Pricing . Dynamic replication the binomial model The black-Scholes model Implied volatility uesTc2 Finance School of Management Chapter 15 Contents ❖ How Options Work ❖ Investing with Options ❖ The Put-Call Parity Relationship ❖ Volatility & Option Prices ❖ Two-State Option Pricing ❖ Dynamic Replication & the Binomial Model ❖ The Black-Scholes Model ❖ Implied Volatility