Explain the majorbreakthrough that was achieved by the BSM model Why do we assume alognormaldistribution for stock
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- Explain the majorbreakthrough that was achieved by the BSM model
- Why do we assume alognormaldistribution for stock prices - what is the value of this approach?
- Explain the concept of implied volatility and how this is included in the BSM model
Expert Answer:
The BlackScholesMerton BSM model is a mathematical framework used in finance to determine the theoretical price of Europeanstyle options a type of financial derivative Developed by Fischer Black Myron ... View the full answer
Related Book For 
Microeconomics Theory and Applications
ISBN: 978-1118758878
12th edition
Authors: Edgar K. Browning, Mark A. Zupan
Posted Date:
