Black and scholes option pricing model formula
Author: Max0 On: 25.06.2017
Best of all, we are well-positioned, in the scenario of another tender offer or IPO, to select and integrate with our preferred broker and transfer agent. Rather than considering some parameters such as volatility or interest rates as constant, one considers them as variables, and thus added sources of risk. The key financial insight behind the equation is that one can perfectly hedge the option by buying and selling the underlying asset in just the right way and consequently "eliminate risk"...