Evaluation des options financières : revue de littérature et explication intuitive des méthodes de calcul

This paper provides a qualitative explanation of the more common financial European options pricing models, namely the Black-Scholes formula, Monte Carlo simulation and the binomial model. The first part is a general introduction to the concept and types of financial options. The second part discusses the variables that determine option prices and gives a conceptual view on the Brownian motion process as a mother-assumption of the aforementioned parametric methods. Finally, the article explains the logic of these three methods, in the purpose to share another way of understanding the financial options models from a qualitative perspective.