Pricing of options : an empirical study using Black-Scholes model
The options market in Singapore is still in its adolescence stage of development. The Stock Exchange of Singapore (SES) has just launched options trading in March, 1993. Trading had been slow initially. This can be attributed to the unfamiliarity of the market players to this new instrument. Sinc...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2015
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/63552 |
| Summary: | The options market in Singapore is still in its adolescence stage of development. The
Stock Exchange of Singapore (SES) has just launched options trading in March, 1993.
Trading had been slow initially. This can be attributed to the unfamiliarity of the market
players to this new instrument. Since the slow start, options trading has picked up and when investors grew more familiar with it.
It is the aim of this project to test the accuracy of Black and Scholes model in predicting
option prices. At the same time we hope to provide a better insight into options-trading
using the concepts of the model.
By testing the ability of the Black-Scholes model in predicting the price of options
accurately, we hope to establish it as an important tool in the options market. This project
also aim to create awareness of the option instrument in the market. The success of
option trading would surely go a long way in establishing Singapore as one of the top
financial centre. |
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