In assessing a premium to pay for a put or call options, the underlying asset is only one of several factors that can determine the value of the option. In the calculation of the impact and value of all determinants, the option price more accurately reflects its value. This note analyzes the impact of various determinants of the price variation and presents two models that use variants of equivalents. The Black-Scholes option pricing model and the binomial option pricing model "Hide
by Walid Busaba, Zeigham Khokher, Jackie Grimshaw 12 pages. Publication Date: August 12, 2005. Prod. #: 905N14-PDF-ENG
Related Case Solutions & Analyses:
Incentive Contracts For Financial Consultants At Private Client Services Division
Pina Bausch: Leadership as collective genius
Tokyo Disneyland (3): New Pricing Policy Needed For Sluggish Demand
Remarkable Mind: Henry Hank Fossey PhD II
HDFC Bank – Securing Online Banking
Euro Zone Convergence Divergence…and Then What
Greg Dyke Taking the Helm at the BBC (A)
The Guardian: Transition to the Online World
: Lululemon Athletica Inc
Kinder Morgan, Inc.
