Video
Option Pricing Explained | No Arbitrage + Financial Mathematics from a Quant
How are options priced? And why does “no arbitrage” determine everything?
In this lecture, Doug Costa, a former math professor and ex-head of quantitative research at Susquehanna, explains the foundational principle behind modern option pricing: no arbitrage. If markets are free of arbitrage opportunities, we can derive pricing formulas. If arbitrage exists, traders can earn risk-free profits. Either way, the mathematics wins.
In Susquehanna’s newest lecture, you’ll learn:
• What “no arbitrage” really means in financial markets
• Why arbitrage-free conditions lead to pricing formulas
• The intuition behind option valuation
• How mathematical reasoning shapes derivatives markets
• The connection to Black-Scholes and modern pricing theory
This is a conceptual deep dive into the theory that underpins options trading, derivatives pricing, and quantitative finance.
Learn more + apply to Susquehanna: https://sig.com/careers/
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