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Chapter
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Part of the Quantitative Perspectives on Behavioral Economics and Finance book series (QPBEF)

Abstract

Financial options, i.e., calls and puts, enable financial engineering and valuation at greater levels of complexity. This chapter explains the hedge-based valuation of calls by the Black–Scholes-Merton formula and some applications of options in finance policy.

Keywords

betaBeta Scale Callus Black-Scholes Formula Strike Price Risk-free Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.Indiana UniversityIndianapolisUSA

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