The following points highlight the top three alternatives to dividend of a company. The alternatives are: 1. Buyback of Shares 2. Stock Split 3. Bonus Issue. Alternative # 1. Buyback of Shares: Buyback is reverse of issue of shares by a company where it offers to take back its shares owned by the investors at a specified price; this offer [...]
Here is an essay on ‘Derivatives’ for class 11 and 12. Find paragraphs, long and short essays on ‘Derivatives’ especially written for college and management students. Essay on Derivatives 1. Essay on the Introduction to Derivatives: With the expansion of business opportunities, the business organizations are exposed to high risk. This can be attributed to increased volatility in asset prices [...]
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 [...]