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Abdulla Javeri

About the Author
Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.

Option Pricing Without Black-Scholes: An Intuitive Approach (2/2)

In the first video on this topic, Abdulla covered the principles behind pricing options. In this video, Abdulla will answer questions relating to the appropriate probability distribution to use, the volatility of the asset, how far away the spot is in relation to the strike, the forward price and the time to expiry.

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Portfolio Volatility

In this video, Abdulla outlines the importance of monitoring portfolio volatility risk and the way it is calculated for a two asset portfolio, and a three stock portfolio.

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Option Pricing Without Black-Scholes: An Intuitive Approach (1/2)

The Black-Scholes Merton option pricing model is the Nobel Prize winning formula that is used as the basis of pricing options. In this video, Abdulla will discuss option pricing without Black-Scholes and in doing so it will provide hints to understanding the more complex area of option Greeks which will be covered in the second video on this topic.

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Monte Carlo Simulation (1/2)

Abdulla explains the significance of the Monte Carlo Simulation: what it tries to achieve and how it works. In so doing, Abdulla provides an example using an excel spreadsheet.

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Monte Carlo Simulation (2/2)

In the previous video, Abdulla explained how Monte Carlo is a way of modelling a probability distribution of returns or prices. In this video, Abdulla examines the nature of stock returns to come up with a formula that can be used in Excel to simulate the price paths.

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Relationships Between Assets (7/8): Beta Limitations

When numbers are used to estimate what is likely to happen in the future, there are always limitations. In this video, Abdulla discusses the limitations of beta including evaluating its consistency, the data set used and the nature of the regression line.

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Relationships Between Assets (5/8): Linear Regression and Beta Overview

In the earlier video on the overview of linear regression, Abdulla explained the process of how to construct the regression line. In this video, Abdulla will discuss the related jargon used in financial markets and calculate the numbers for the regression line using Microsoft Excel functions.

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Relationships Between Assets (3/8): Correlation Limitations

All metrics used to analyse financial markets have limitations. As you will see in this video, correlation and covariance are no different.

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Relationships Between Assets (8/8): Is Beta a Good Fit?

From a financial markets perspective, linear regression is described as a way of looking at the relationship between returns on two assets. In this video, Abdulla demonstrates how to calculate the regression line, and evaluates its value as an estimator.

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Relationships Between Assets (6/8): Beta Uses

Beta can play a part in stock selection and hedging strategies. In this video, Abdulla explores some applications of beta in the markets.

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