December 2021
Beginner to intermediate
1168 pages
30h 17m
English
Questions answered in this chapter:
As a function of the stock price on the exercise date, what do the payoffs look like for European calls and puts?
What parameters determine the value of an option?
How can I estimate the volatility of a stock based on historical data?
How can I use Excel to implement the Black-Scholes formula?
How do changes in key parameters change the value of a call or put option?
How can I use the Black-Scholes formula to estimate a stock’s volatility?
How can I protect the formulas in my worksheet so that nobody can change them?
How can I use option pricing to help my company make better investment decisions?
During the early 1970s, economists Fischer Black, Myron Scholes, and Robert ...
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