Pedagogical arc
01 – 02 Markets & Derivatives
The instruments themselves — equities, FX, commodities, forwards, futures, options — and the no-arbitrage logic that makes them all related.
03 – 05 The Random Walk
From the discrete binomial tree to continuous Brownian motion and the basic stochastic calculus needed to price an option.
06 – 08 The Black–Scholes World
The PDE, the closed-form formulæ, the Greeks, the implied-volatility surface, and the hedging strategies that follow.
09 – 10 Exotic & Multi-asset
Barriers, Asians, lookbacks, compounds — and what happens when you write options on baskets, spreads or exchanges of two assets.
11 – 12 Fixed Income
Yield, duration, convexity, swaps, the yield curve — then short-rate models (Vasicek, CIR, HW) and the HJM / BGM forward-rate framework.
13 – 14 Risk & Numerics
Portfolio theory, CAPM, VaR, credit risk and CrashMetrics — then the finite-difference and Monte Carlo machinery that prices everything else.
Presentations in this series
Markets and Derivatives
- 01Products and Markets →Equities, dividends, splits, commodities, currencies, indices, the time value of money, fixed-income basics, forwards and futures, no-arbitrage. Interactive forward-pricing calculator.
- 02Derivatives →Calls, puts, payoff diagrams, put–call parity, binaries, bull/bear spreads, straddles, strangles, butterflies, condors, calendars. Interactive payoff-and-P&L composer for option strategies.
The Random Walk
- 03The Binomial Model →One-step and multi-step binomial trees, risk-neutral probability, delta hedging, the continuous-time limit. Interactive binomial-tree pricer for European and American options.
- 04The Random Behavior of Assets →Examining returns, timescales, drift, volatility, the lognormal random walk, the Wiener process. Interactive GBM path simulator with histogram of terminal prices.
- 05Elementary Stochastic Calculus →The Markov and martingale properties, quadratic variation, Brownian motion, stochastic integration, SDEs, Itô's lemma. Interactive Brownian-motion + quadratic-variation visualiser.
The Black–Scholes World
- 06The Black–Scholes Model →A very special portfolio, elimination of risk by delta hedging, no arbitrage, the Black–Scholes PDE, the assumptions, boundary & final conditions, PDE solution methods. Interactive option-value surface viewer.
- 07The Black–Scholes Formulæ and the Greeks →Formulæ for calls, puts, binaries; Delta, Gamma, Theta, Speed, Vega, Rho; implied volatility; the classification of hedging types. Interactive Greeks explorer with live Δ, Γ, Θ, V, ρ curves.
- 08Overview of Volatility Modeling →Actual, historical, implied and forward volatility; GARCH; range-based estimators; skews and smiles; deterministic, stochastic and uncertain vol. Interactive implied-vol solver and smile/skew explorer.
Exotic and Multi-asset Options
- 09Exotic and Path-dependent Options →The option taxonomy: time dependence, path dependence, dimensionality, order, embedded decisions. Barriers, Asians, lookbacks, compounds, Parisians. Interactive barrier-option Monte Carlo with knock-in / knock-out visualisation.
- 10Multi-asset Options →Multidimensional lognormal random walks, the correlation matrix, exchange options via similarity reduction, basket options, the realities of correlation. Interactive correlated GBM scatter and basket-payoff explorer.
Fixed Income
- 11Fixed-income Products, Yield and Swaps →Zero-coupon and coupon bonds, the money-market account, FRAs, repos, STRIPS, day-count conventions, YTM, duration, convexity, bootstrapping forward rates, vanilla interest-rate swaps, the swap curve. Interactive bond-yield / duration calculator.
- 12Interest Rate Models →Stochastic short-rate models (Vasicek, CIR, Ho–Lee, Hull–White), the bond-pricing equation, the market price of risk, yield-curve fitting; the HJM forward-rate equation and the Brace–Gatarek–Musiela LIBOR market model. Interactive short-rate path simulator.
Risk and Numerics
- 13Portfolio Management, VaR & Risk →The Kelly criterion, diversification, Modern Portfolio Theory and the efficient frontier, CAPM, Value at Risk for assets and derivatives, credit risk and the Merton model, copulas, CrashMetrics, and the great derivatives disasters. Interactive efficient-frontier + VaR explorer.
- 14Numerical Methods →The taxonomy of methods (finite differences, Monte Carlo, numerical integration), the explicit finite-difference scheme for Black–Scholes, Monte Carlo for European and American options (Longstaff–Schwartz), low-discrepancy sequences. Interactive Monte Carlo + finite-difference pricer.
Why this companion? Wilmott's book is famously written like a working quant talks — informal, fast-moving, packed with the actual reasoning a desk uses to build a model and hedge a book. That style is great to learn from but punishing to flip back to: the key picture you need next is sometimes scattered across three sub-chapters and an exercise. This series instead pins each of those pictures to a slide and makes the parameters draggable. Where the book says "now imagine the volatility is a smile of the form…" you'll have a slider and the smile.
Read the book and the deck side by side — chapter and section numbers in each deck correspond directly to Wilmott's second edition.