Tag Archives | Options

Currency Options and Its Benefits | Derivatives | Forex Management

Currency options is "a contract giving the buyer the right but not the obligation to exchange a specified amount of one currency into another specified currency on or before a specified date at a specified rate of exchange. The buyer (holder) of the option pays a 'premium' to its writer (seller)". An option is a contract that gives the holder [...]

By |2017-10-09T08:51:40+05:30October 9, 2017|Options|Comments Off on Currency Options and Its Benefits | Derivatives | Forex Management
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Black-Scholes Model for Pricing Equity Options | Financial Management

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 [...]

By |2017-07-11T04:45:58+05:30July 11, 2017|Derivatives|Comments Off on Black-Scholes Model for Pricing Equity Options | Financial Management
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