Showing papers on "Binomial options pricing model published in 1983"
28 citations
TL;DR: In this article, the authors report the results of an Australian empirical study which examined a number of testable implications of the original Black and Scholes (B-S) option pricing model, and a variant of the model, that incorporates the dividends paid on the underlying security.
Abstract: The aim of this paper is to report the results of an Australian empirical study which examined a number of testable implications of the original Black and Scholes (B-S) Option Pricing Model, and a variant of the model, that incorporates the dividends paid on the underlying security. The results do not support the notion that the B-S model prices options “correctly” within the Australian Options Market.
3 citations
TL;DR: The most widely accepted option pricing model, derived by Black and Scholes (B-S), studies single priced options and has important implications for the relative pricing of compound call options.
2 citations