
Capabilities of Option TutorTM
To get a feel for how you can use Option Tutor, you should check the sample
tutorials. The Barrier Option Calculator and the Option Sensitivities Display have been implemented in Java, and you can use them at any time. Option Tutor allows you to do all of the following, and more. Ask yourself whether you can:
- Create both terminal payoff diagrams and payoff diagrams at any point of time
- Calculate implied volatilities and hedge parameters of European and American style options
- Calculate implied volatilities and hedge parameters for European and American barrier options
- Easily check the accuracy of different numerical methods in computing American option prices and hedge parameters
- Calculate hedge parameters for portfolios of options and futures
- Calculate Value at Risk statistics for portfolio's of options and futures
- Link to live data feeds and recalibrate volatilities in real time
- Calculate hedge statistics and exposures in real time
- Easily link to and from spreadsheets
- Calculate implied interest rates and convenience yields from futures prices
- Visualize how the "Greeks" depend on any variable affecting option prices
- See how an exposure profile changes over time
- Visualize the details of option replication and delta hedging in the binomial model
- Easily understand the valuation of exotic options by seeing how values are calculated in simple binomial trees
- Learn the application of option models to derivatives on stocks, indexes, currencies, and commodities.
(C) Copyright 1999, OS Financial Trading System