This case introduces students towards the concepts of option valuation and asks these to estimate option prices while using Black-Scholes prices model. It demonstrates the significance of unpredictability to option prices and enables the development of the idea of implied unpredictability. The case can be used most effectively in sequence with "Ito's Delight" (UVA-F-1333) introducing option-prices concepts. Different versions of the teaching plan happen to be effectively employed for both Master of business administration and executive-education audiences.
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