The logic of the option pricing theory is based on the ...

Market price of an option = Intrinsic value + time value of the option 2. The Black Scholes Pricing Model (Dec 07, Dec 09, Jun 11, Jun 12, Dec 13) 2.1. The Black Scholes Formula. 2.2.1 The formula for the value of a European call option is given by: Value of a call option = Where: Pa = the current price of the underlying asset. Pe = the ... ................
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