Using Bloomberg's OVME screen, estimate the equilibrium price on a selected call and put option. Guide: -

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Using Bloomberg's OVME screen, estimate the equilibrium price on a selected call and put option. Guide:

- Select the options from the selected stock's OMON or CALL screen.

- Load the option: Option Ticker

- Enter OVME

- On OVME screen, determine the B-S price using the continuous dividend yield (select Black-Scholes Continuous). Select dividend yield provided or input your own estimate (click "More Market Data" and keep the Bloomberg default dividend yield or input you own). Select Bloomberg's implied volatility, historical, or provide your own volatility estimate.

- On OVME screen, determine the B-S price using the discrete dividend (select Black-Scholes Discrete or Trinomial). Select dividend payments provided or input your own estimates by going to "Settings." Select Bloomberg's implied volatility, historical, or provide your own volatility estimate.
Compare your option values to the market prices (bid, ask, and last). Current option prices can be found on OMON, CALL, and the option's GP and DES screens.

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