Experts conduct an engaging session on “Option Pricing”   

The Finance Department of Apeejay School of Management (ASM) recently organised an enriching guest lecture for second-year Finance students. Spearheaded by Dr. Gaurav Dawar and Prof. Nupur Soti, the session focused on “Option Pricing,” delving into the Black-Scholes Model and Option Greeks. The lecture was delivered by Mr. Rishabh Mishra, an accomplished professional from Arcesium’s Pricing, Valuation, and Middle Office Team, who brought a wealth of expertise from the financial markets.

The lecture began with Mr. Mishra explaining the fundamentals of Option Pricing, emphasizing the Black-Scholes Model’s role in determining the theoretical value of options. He highlighted how the model integrates factors such as stock price, strike price, time to expiration, volatility, and risk-free interest rates to provide a robust valuation framework.

Transitioning to Option Greeks—Delta, Gamma, Vega, Theta, and Rho—Mr. Mishra explored their significance in gauging the sensitivity of option prices to various market conditions. He discussed how traders and analysts leverage these metrics to optimize portfolios and manage financial risk effectively.

To make these advanced concepts relatable, Mr. Mishra incorporated real-world examples and case studies from his professional experience. This approach bridged the gap between theoretical learning and practical application, resonating deeply with the students. His ability to simplify complex ideas while connecting them to real-market scenarios earned high appreciation from attendees.

Students expressed enthusiasm for the session, underscoring its impact on their academic and career growth. Kaifi Malik, a second-year PGDM student, remarked, “The session was extremely valuable in bridging the gap between theory and practice. Understanding how the Black-Scholes Model works in real-world scenarios will certainly help in my career.” Another student, Rishabh Jha, shared, “Learning about Option Greeks was quite useful. It gave me a clearer perspective on how financial professionals manage risk, which I believe will be essential for my future in finance.”

The lecture proved to be a significant step in equipping students with practical insights into option pricing and risk management. It underscored ASM’s commitment to fostering industry-relevant learning, preparing its students for the complexities of the financial world.