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Black-Scholes and beyond: Option pricing models Ira Kawaller, Neil A. Chriss
Publisher: MGH

[Editor's So it looks like Facebook will become a favored playground for active traders, which will be good for liquidity. Too many powerful people make fast millions doing it. The unknown value above/below that fixed price is beyond the control of the company and is therefore a contingent (off-balance-sheet) liability. The Black-Scholes option-pricing model is a good academic exercise that works better for traded options than stock options. Oct 18, 2010 - For Mandelbrot, the crucial turning point came with the development—and widespread acceptance—of the Black-Scholes options pricing model in the early 1970s. Let's take a look at options strategies that go beyond a day. By using an option-pricing model. Black-Scholes and the many financial risk models that have evolved from it (including Felix's friend the Gaussian . The strike price is a known obligation. A specific model is not specified, but the most widely used is the Black-Scholes model. Posted by DaggaRoosta | Report as abusive. But in our world it will survive, at least until the next crisis, and probably beyond. May 30, 2012 - But once shares broke $30, and then $29 shortly after, implied volatility quickly spiked towards the 65% (on the y-axis, if you're using a Black-Scholes option pricing model) and above 75% in the June out-of the-money puts.