Results for tag: "Option Pricing"

Option pricing is a financial tool used in corporate finance to determine the value of an option. It is used to assess the potential return of an investment, and to determine the risk associated with the investment. Option pricing is based on the Black-Scholes model, which uses the current stock price, the strike price, the time to expiration, the volatility of the stock, and the risk-free rate of return to calculate the value of the option. Option pricing is used by investors to determine the best investment strategy for their portfolio. It is also used by companies to assess the potential return of a new project or investment. Option pricing is an important tool for corporate finance, as it helps to determine the value of an option and the potential return of an investment. Some companies in the option pricing market include the Chicago Board Options Exchange (CBOE), the International Securities Exchange (ISE), and the Nasdaq Options Market (NOM). Show Less Read more