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Black scholes

Aannette7y ago
The problem with black scholes John is that due to a couple of points difference the value of entire call option changes. What will the markers do with that? I subtracted the pv of dividend from share price. My pv of dividend was 23.8, theirs was 23.58 because of discount factor rounding. Value of my call option is 91.7 cents, their call option is 150.23 cents. this is such a massive difference!
Aannette7y ago#1
Uh. I actually forgot to add 0.5. The answer is now correct. Kindly close the thread.
John MoffatJohn MoffatTutor7y ago#2
No problem :-)
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