2 pages/≈550 words
Business & Marketing
FM Unit V Paper: Variables impacting pricing options (Research Paper Sample)
Using the CSU Online Library, research the variables that impact the pricing of options. Focus your energy on comparing the attributes of the two widely accepted models used for option pricing: Black-Scholes and Binomial Models. Your paper should be completed in Word and be approximately one to two pages in length following APA format. source..
Variables impacting pricing options
Many investors leverage on the fast moving stock in the market. If you don’t know how to take advantage of such movements in the market, you might be left reeling from the losses you have incurred from your stock. To take advantage of such movements, you might want to consider using options to plan your next move. The power of an option lies in its versatility to adapt to your position in any situation that arises. However, this adaptability does come with a cost. It would be prudent to consider the variables that affect the options of pricing of stock before sticking to single option of pricing. The versatility of an option does not only see you making money when the price goes up but even when the price goes down or sideways.
There are variables that affect the pricing of these options. With a focus in the two major pricing models – Black-Scholes and Binomial Models, we compare the attributes of the primary factors that influence the pricing.
Black-Scholes model ass...
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