• 1. Introduction
• 2. Classification of contracts, and terminology
• 3. Hedging, replication, and arbitrage
• 3.1 Hedging and replication
• 3.2 Arbitrage
• 4. The general valuation framework
• 4.1 Spot price, expected price, and forward price
• 4.2 An asymmetric probability density of the underlying price
• 4.3 The expected value of a contract is zero  an analogy with the risk-neutralvaluation approach
• 4.4 Substituting probabilities by prices
• 5. Option pricing with specific functional or distributional assumptions
• 5.0 Pre-Remarks
• 5.1 A constant (Rectangular distribution)
• 5.2 A linear function (Triangular distribution)
• 5.3 A quadratic function (Parabolic distribution)
• 5.4 An exponential function (Negative exponential distribution)
• 5.5 The normal law of error
• 5.6 A comparison with the Black-Scholes model
• a) Normal versus lognormal market price
• b) Deriving the Black-Scholes formula from the Bronzin equation
• c) The Bronzin style Black-Scholes formula
• d) A simple expression (approximation) for at-the-money options
• 5.7 The binomial distribution (Bernoulli theorem)
• 6. Valuation of Repeat-Options (Noch-Geschäfte)
• 7. Option pricing in historical perspective, and an evaluation of Bronzins contribution