In this article we will discuss about:- 1. Introduction to Black-Scholes Model 2. Assumptions of Black-Scholes Model 3. Advantages 4. Limitations. Introduction to Black-Scholes Model: It is a tool for pricing equity options. Fischer Black, Myron Scholes and Robert Merton were awarded the Nobel Prize in Economics for developing this model in 1973. Prior to its development there was no [...]
Here is an essay on ‘Bonds’ for class 11 and 12. Find paragraphs, long and short essays on ‘Bonds’ especially written for college and management students. Essay on Bonds Essay Contents: Essay on the Meaning of Bonds Essay on the Types of Bonds Essay on Bond Valuation Essay on Current Yield of Bonds Essay on the Bond Pricing Theorems Essay [...]
Following are the most common methods used for equity valuation: Method # 1. Based on Balance Sheet: i. Book Value: It is the net worth of a company divided by number of outstanding shares. Net worth is equal to paid-up equity capital plus reserves and surplus minus losses. ii. Liquidation Value: Liquidation value is different than a book valuation. [...]