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Documents © Paul Koch 1-1 Chapter 10. Basic Properties of Options I. Notation and Assumptions: A. Notation:.....

Slide 1 © Paul Koch 1-1 Chapter 10. Basic Properties of Options I. Notation and Assumptions: A. Notation: S:current stock price; K:exercise price of option; T:time to expiration…

Documents Drake DRAKE UNIVERSITY Fin 288 The Greek Letters.

Slide 1 Drake DRAKE UNIVERSITY Fin 288 The Greek Letters Slide 2 Drake Drake University Fin 288 Pricing Options Both the Binomial Tree Approach and the Black Scholes approach…

Documents Black Scholes Option Pricing Model Finance (Derivative Securities) 312 Tuesday, 10 October 2006...

Black Scholes Option Pricing Model Finance (Derivative Securities) 312 Tuesday, 10 October 2006 Readings: Chapter 12 Random Walk Assumption Consider a stock worth S In a…

Documents Black Scholes Option Pricing Model

Black Scholes Option Pricing Model Finance (Derivative Securities) 312 Tuesday, 10 October 2006 Readings: Chapter 12 Random Walk Assumption Consider a stock worth S In a…