This section examines the Black-Scholes option pricing model, and then applies the model options. Logic model highlights and illustrated with simple examples. The model is then applied to real data. The note focuses on procedures to assess the potential of the stock price change (volatility). It also provides the reader assess the economic basis of the model, and the ability to apply the model to real data.
This Darden study. "Hide
by Robert S. Harris, Robert M. Conroy Source: Darden School of Business 10 pages. Publication Date: February 5, 2007. Prod. #: UV0849-PDF-ENG
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