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See Learning in Person for seminars and conferences on this standard. If you are enrolled in the IFRS Accounting for Financial Instruments course, here is the link to the pre-work: Time Value of Money Online Tutorial
BACKGROUND AND GENERAL INFORMATION Time Value of Money Online Tutorial A review of concepts which apply to valuation of some financial instruments. TOOLS Calculators for Valuing Options There are some tools that can help you determine a fair value for an option contract. Black-Scholes Model This is a model that is used to price financial instruments. When applied to a stock option, the model incorporates the constant price variation of the stock, the time value of money, the option's strike price and the time to the option's expiry. Here is a Black-Scholes model calculator from the Economic Research Institute (ERI). The ERI also offers an online course on the Black-Scholes model. The course is free, although the exam associated with the course is $29. One of the inputs to the Black-Scholes calculation is volatility. The Chicago Board Options Exchange (CBOE) provides current and historic volatility numbers for options that trade on its exchange. Enter the stock symbol in the little window on the left side of the screen, and click the blue Go! button that is right beside it. If you just need a current volatility number, the CBOE’s Options Calculator might be easier to use. Enter the stock symbol on the left side of the screen, and data for a near-term option will populate a table. You can easily choose a different option style, price, strike price or expiration date by using the up or down arrow beside the appropriate box. The Calculator will also provide you with the option’s Delta, Gamma, Theta, Vega and Rho, which may be more information than you need. Binomial Model This is another way to determine option value. The advantage the binomial model has over the Black-Scholes model is that it can be used to price American-style options, because it displays values at a series of points in time, and can therefore be useful in identifying early exercise opportunities, which American options allow. A fuller description of the binomial model, and how it compares to the Black-Scholes, is available by scrolling down this page to the section titled Relationship to the Black-Scholes model. This link also provides an overview of option pricing, volatility, and the Black-Scholes model. A binomial model calculator is available here. LEARNING IN PERSON IFRS – Accounting for Financial Instruments The objective of this seminar, and the related self-study materials, is to walk through financial instruments accounting standards under IFRS. The seminar will expose you to the differences between IFRS and Canadian GAAP and the impact of the differences on the balance sheet and income statement. TBA, British Columbia |