Tag Archives | Put Option

Put Option and Its Payoff Position | Derivatives | Forex Management

The put option gives the buyer the right, but not the obligation, to sell a given quantity of the underlying asset at a given price on or before a given date. The put option gives the buyer the right to sell the underlying asset at the exercise price up to the date of the contract. The seller of put option [...]

By |2017-10-09T08:51:41+05:30October 9, 2017|Options|Comments Off on Put Option and Its Payoff Position | Derivatives | Forex Management
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Valuation of Put Option using Black-Scholes Model | Forex Management

An alternative form of valuation is to use the Black-Scholes formula for a put, which is: P = Xe –r(T-t) [1-N(d2)] – S [1-N(d1)] Where d1 and d2 are as given in the section deriving a call option. Note that [1 - N(d2)] is the same as N(-d2) and [1 - N(d1)] is the same as N(-d1). Using the same [...]

By |2017-10-09T08:51:40+05:30October 9, 2017|Options|Comments Off on Valuation of Put Option using Black-Scholes Model | Forex Management
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