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Title: option pricing theory

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Subject: Business
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Date: December 6, 1998
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Length: 15 / 4412
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21 1. INTRODUCTION The most popular example of a derivative securities is options, which represent a contract allowing one side to buy (in the case of a call option) or to sell (the case of a put option) a security on or before some specified maturity date in the future for a price which is set today...

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On the other hand, the seller (writer) of the option, with this contract, undertakes the obligation to deliver the asset at the understood price whenever the the buyer claims for. In this study, the functioning of option markets, option types and option pricing methods are examined, respectively...

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