Economics, Econometrics and Finance
8 years ago

Black-Scholes Model Proven Relevant for Banking Stock Options in India.

Journal of Management and Research
An Empirical Analysis of Black-scholes Option Pricing Model for Select Banking Stocks
V. Panduranga

Paper Summary

The study tested the Black-Scholes option pricing model for banking stocks in the Indian Derivative market. Results showed that the model's expected option prices closely matched the actual market prices in three out of four cases, indicating its relevance for pricing options in the banking sector.

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