Using the Black and Scholes Formula (in Spanish)

Fernandez, Pablo

doi:10.2139/ssrn.1116312

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Using the Black and Scholes Formula (in Spanish)

30 Pages Posted: 7 Apr 2008

See all articles by Pablo Fernandez

Pablo Fernandez

IESE Business School

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