formulae

The Black–Scholes formulas for the prices of European calls and puts on a non-dividend paying stock are: C = SN(d1) – Xe-rT N(d2) P = Xe-rT N(-d2)- SN(-d1) Where d1 = [ ln s/x +(r+δ2/2)T ]/ δ √T And d2 = d1 –δ√T • The Black Scholes equation is done in continuous time. This requires...

Intuition would tell us that the spot price of the underlying, exercise price, risk-free interest rate, volatility of the underlying, time to expiration and dividends on the underlying (stock or index) should affect the option price. Interestingly before Black and Scholes came up with their...

hi everyone! i have attached a pdf link having geometry formulae. hope it would be helpful for u people. namrata... i have attached pdf link for geometry formulae namrata...