Comparing Option Pricing Models: Which One Will Save Your Portfolio?
The article compares two popular models used in trading, the Black-Scholes and Binomial Option Pricing Models, to help traders and companies decide which one to use for risk management. By applying these models to five different companies, the researchers aimed to see which model works best in different situations. The study found that both models have their strengths and weaknesses, and the choice between them depends on the specific needs of the trader or company.