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Option pricing


Several mathematical models exist to calculate an approximation of the Fair value of an option, among them, the Black-Scholes model and the Binomial model. The values provided by these models depend on at least the following factors:

Implicitly or explicitly, these models also rely on particular assumptions about the process of innovations in the underlying security price, dividends, and interest rates; transferability of the option right; and the operation of tax law.
Steven Huddart
Smeal College of Business, Penn State University, University Park, PA 16802-3603 USA
(814) 863-0048
huddart@psu.edu
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http://personal.psu.edu/sjh11/OptionGlossary/OptionPricingModels.shtml
was last updated on Tue, Aug 21, 2018.
Today is Sun, Sep 15, 2019.

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