4. 26. BlackScholes put pricing model [LO 25.2] Use the BlackScholes model for pricing a call, put-call

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4. 26.

Black–Scholes put pricing model [LO 25.2] Use the Black–Scholes model for pricing a call, put-call parity and Problem 25 to show that the Black–Scholes model for directly pricing a put can be written as:

P = E × e–Rt × N(−d2) − S × N(−d1)

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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