Phase 15
Derivatives & Volatility
Phase 15 of the Quant Academy curriculum.
15.1Full Lesson
Black–Scholes Assumptions, the Greeks, and Hedging
The pricing PDE as a hedging identity, the sensitivities that run a derivatives book, and where the model’s assump
15.2Full Lesson
Implied Volatility and the Volatility Smile/Skew
Why one Black–Scholes number cannot fit every strike, and what the resulting curve tells you about the market&rsqu
15.3Full Lesson
Local Volatility and the Dupire Equation
The unique diffusion that reprices the entire surface today - extracted directly from option prices.
15.4Full Lesson
Stochastic Volatility and the Heston Model
Giving volatility its own random driver - and getting realistic smile dynamics in return.
15.5Full Lesson
The Volatility Surface: Dynamics, Arbitrage Constraints, and Calibration
The whole object a desk trades - and the no-arbitrage rules any fitted surface must obey.