Options Pricing Models and Greeks in Excel

Understanding how financial options are priced and managed is a critical skill for anyone entering the world of quantitative finance or risk management. This text-based course guides you through the core mathematical foundations and practical implementations of options pricing without requiring advanced prior knowledge. You will transition from basic financial concepts to building functional pricing models in Excel. By reading step-by-step breakdowns, you will learn to calculate option sensitivities (the Greeks) and use them to assess market risk. What you'll learn: Understand the fundamental terminology and concepts of financial options and market variables; Build the classic Black-Scholes-Merton pricing model using modern Excel formulas; Create multi-step binomial trees to price American and European options; Implement Monte Carlo simulations in Excel to project asset price paths; Calculate and interpret key option Greeks including Delta, Gamma, Theta, Vega, and Rho; Apply modern Excel formula patterns to streamline complex financial calculations. The course begins with foundational definitions of options and market mechanics before moving into the step-by-step construction of pricing models. You will progress through written explanations, formula breakdowns, and practical modeling exercises designed for self-paced study. This course is designed for beginners in finance, students, or aspiring analysts who want to understand options math. No advanced programming or complex financial backgrounds are required. Start reading today to build a strong foundation in quantitative options analysis.