Interest rate changes influence the broader economy and financial markets and play a central role in option valuation. In models like Black-Scholes, the risk-free rate affects the present value of an ...

Learn about the Black-Scholes model, how it works, and how its formula helps estimate fair option prices by weighing ...

It shows the fuzzy price interval of bond prices with climate risks, which corresponds to the membership function u and the price interval. It can be seen that due to the existence of fuzzy ...

If we look back over the history of modern financial markets, one of the most influential developments was the Black-Scholes option pricing formula. However, there are a number of misconceptions ...

It is essential for board members, executive officers, CFOs, auditors and private equity investors to comprehend option-pricing models used to determine the per-share values of common and preferred ...

In this paper, we investigate the importance of different loss functions when estimating and evaluating option pricing models. Our analysis shows that it is important to take into account parameter ...