Lecture 18 covers hedging using options and compares the benefits of hedging using options versus hedging using futures. Examples of hedging using options are presented.

Lecture 17 introduces the concept of put-call parity and its implications for options pricing. Arbitrage relationships between options contracts are discussed.

Lecture 16 Options on futures are introduced and options terms such as put, call, strike price, premium, and intrinsic value and time value are defined.  Numerous examples of options trades are presented.