EVALUATION DES OPTIONS FINANCIERES : REVUE DE LITTERATURE ET EXPLICATION INTUITIVE DES METHODES DE CALCUL - REVUE DE BIBLIOGRAPHIE –

Abstract

This paper provides a qualitative explanation of the more common financial European options pricing models, namely the Black-Scholes formula, Monte Carlo simulation and the binomial model.The first part is a general introduction to the concept and types of financial options. The second part discusses the variables that determine option prices andgives a conceptual view on the Brownian motion processas a mother-assumption of the aforementioned parametric methods. Finally, the article explains the logic of these three methods, in the purpose to share another way of understanding the financial options models from a qualitative perspective.

Keywords

• financial options, brownian motion, black-scholes, binomial model, monte carlo.