Abstract
The use of derivatives both by companies and investors has increased exponentially over the last 20 years. Equity options are commonly used by investors in addition to positions in the underlying equity. In this chapter we review the following: • Pay-off profiles of various options strategies • Pricing of European-type and American-type options for both dividend paying and nondividend paying stocks using (a) BlackScholes and Merton models, (b) Binomial method, and (c) option pricing calculators. © 2009 Springer-Verlag Berlin Heidelberg.
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CITATION STYLE
Mateti, R. (2009). Pricing equity options. In Investment Management: A Modern Guide to Security Analysis and Stock Selection (pp. 321–357). Springer Berlin Heidelberg. https://doi.org/10.1007/978-3-540-88802-4_14
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