If you are a college student who has just entered the university, don't worry, especially options, if you find that the pricing models of various derivatives mentioned in the textbook are very dizzy. Trust me, these things are old. Just understand.

Get down to business, get down to business. In fact, not only derivatives, but also the essence of all academic pricing models related to finance is two words: "arbitrage"! ! Landlord, I'm really not kidding you. Please remember this! Be sure to remember this! Be sure to remember this! If you don't understand now, one day you will find that the idea of pricing is actually very simple.

Then let me briefly explain why I said that the essence of financial thought is arbitrage.

Please be patient and read the development history of finance from vassal discipline to independent discipline that I introduced to you. I promise it's the easiest. As a finance major, you should also know Macovei's portfolio theory, which was a sensation at that time. Theoretically, all non-systematic risks can be dispersed in a complete market. However, it is precisely because of the inability to disperse systemic risks that financial derivatives such as futures have emerged. It doesn't matter if you don't understand the above, now is the point. What kind of problems has portfolio theory been talking about? How to find the relationship between risk and return, and how to quantify risk, so expectation and variance are introduced here as tools to measure return and risk, which is a milestone progress, but even so, the financial field is still much worse. What is this? As a discipline, it is different from the thinking of analyzing problems in economics. Without this, finance can only be regarded as a branch of economics, which seems to be called applied economics. If the landlord is interested, you can check it yourself. Why do you say that? Go back and think about the things in golden boy economics, such as portfolio. Draw an efficient boundary of portfolio first, then find the capital market, then find the indifference curve and see the intersection. Landlord, did you think of anything when you saw this? ! Yes! It is specialized western economics, which has abused me for a lot of time in macro and micro aspects, and you will find that they are very similar. So finance was still an affiliated subject at that time, until when? Yes! Is the emergence of arbitrage! ! ! ! Say the important things three times and think about them yourself. What exchange rate parity, interest rate parity, interest rate term structure (beginning), etc., are not all centered on arbitrage? ! So think more when you learn something in the future, and you will understand the problem more deeply.

Finally, I want to say that theory should be divorced from practice. I wonder how many professors want to use theory to guide practice. China, er, our market is still very incomplete. If you want to apply theory to practice, you will die miserably at first. Trading is trading, and theory is theory. That's all, 24K pure hand tour, only for your 80 points reward, please adopt.