We often change our minds after we decide to do something. In finance and business though, if you think you might like to change your mind you will have to pay your counterparty so that your right to change your mind is agreed in advance.But how much is the right to change your mind worth? Option pricing is the art of determining the value of this right.This lecture was recorded by Raghavendra Rau on 26th February 2024 at Barnard's Inn Hall, LondonThe transcript and downloadable versions of the lecture are available from the Gresham College website:https://www.gresham.ac.uk/watch-now/option-pricingGresham College has offered free public lectures for over 400 years, thanks to the generosity of our supporters. There are currently over 2,500 lectures free to access. We believe that everyone should have the opportunity to learn from some of the greatest minds. To support Gresham's mission, please consider making a donation: https://gresham.ac.uk/support/Website:  https://gresham.ac.ukTwitter:  https://twitter.com/greshamcollegeFacebook: https://facebook.com/greshamcollegeInstagram: https://instagram.com/greshamcollegeSupport the show

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