Download This PaperUsing the Black and Scholes Formula (in Spanish)
30 Pages Posted: 7 Apr 2008
Date Written: April 3, 2008
Abstract
I show: a) how to use the Black and Scholes formula to value options; b) what is the arbitrage portfolio; c) how to calculate the volatility; d) how the early exercise affects the value of the option; and e) how the dividends affect the value of the option; and f) what is the implicit volatility.
Keywords: Black and Scholes, volatility, arbitrage, early exercise, put, call
JEL Classification: G12, G31, M21
Suggested Citation: Suggested Citation
Fernandez, Pablo, Using the Black and Scholes Formula (in Spanish) (April 3, 2008). Available at SSRN: https://ssrn.com/abstract=1116312 or http://dx.doi.org/10.2139/ssrn.1116312
Pablo Fernandez (Contact Author)
IESE Business School ( email )
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Barcelona, 08034
Spain
+34 91 357 0809 (Phone)
+34 91 357 2913 (Fax)
HOME PAGE: http://web.iese.edu/PabloFernandez/
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