Option Pricing Models
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Option pricing models are mathematical models used to calculate the theoretical value of options.
Option pricing models are mathematical models used to calculate the theoretical value of options. These models help traders and investors determine fair prices for options contracts, considering factors such as the underlying asset price, strike price, time to expiration, volatility, and interest rates.
Option Pricing Models A comprehensive toolkit for implementing and analyzing option pricing models, including: Black-Scholes model, Monte Carlo simulation, Binomial tree method