Option Pricing Models

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Derivatives – Phase 2 – Option Pricing Models

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Deliverable Length: 
800-1000

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Due Date: 
1/20/2014 10:59:59 PM  CT –
 MINUM OF 3 REFERENCES/ ORIGINAL WORK





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Define and Explain the uses of each of the following principles of option pricing:

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Minimum value of the put or call

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Maximum value of a put or call

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Value of a put or call at expiration

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Effect of time to expiration

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Effect of exercise price

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Effect of interest rates

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Effect of stock volatility

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