This case introduces students to the concepts of option pricing and asks them to estimate option prices using the Black-Scholes pricing model. This illustrates the importance of the volatility of the stock options and allows us to introduce the concept of implied volatility. Case, the most effective sequence of "Delight Ito" (UVA-F-1333) to introduce the concepts of option pricing. Various versions of this curriculum has been successfully used for both MBA and executive education audiences. "Hide
by Kenneth Eades Source: Darden School of Business 3 pages. Publication Date: July 13, 2001. Prod. #: UV2481-PDF-ENG
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