Principles of Corporate Finance

Option Value w The value of an option at expiration is a function of the stock price and the exercise price. ...

Option Value w The value of an option at expiration is a function of the stock price and the exercise price. Example - Option va ...

Option Value Call option value (graphic) given a $85 exercise price. Share Price Call option value 85 105 $20 ...

Option Value Put option value (graphic) given a $85 exercise price. Share Price Put option value 80 85 $5 ...

Option Value Call option payoff (to seller) given a $85 exercise price. Share Price Call option $ payoff 85 ...

Option Value Put option payoff (to seller) given a $85 exercise price. Share Price Put option $ payoff 85 ...

Option Value Protective Put - Long stock and long put Share Price Position Value Long Stock ...

Option Value Protective Put - Long stock and long put Share Price Position Value Long Put ...

Option Value Protective Put - Long stock and long put Share Price Position Value Protective Put Long Put Long Stock ...

Option Value Protective Put - Long stock and long put Share Price Position Value Protective Put ...

Option Value Straddle - Long call and long put Strategy for profiting from high volatility Share Price Position Value Long cal ...

Option Value Straddle - Long call and long put Strategy for profiting from high volatility Share Price Position Value Long put ...

Option Value Straddle - Long call and long put Strategy for profiting from high volatility Share Price Position Value Straddle ...

Option Value Straddle - Long call and long put Strategy for profiting from high volatility Share Price Position Value Straddle ...

Option Value Upper Limit Stock Price ...

Option Value Upper Limit Stock Price Lower Limit (Stock price - exercise price) or 0 whichever is higher ...

Option Value Components of the Option Price 1 - Underlying stock price 2 - Striking or Exercise price 3 - Volatility of the stoc ...

Option Value Black-Black-ScholesScholes Option Pricing Model Option Pricing Model OC = Ps[N(d 1 )] - S[N(d 2 )]e-rt ...

OC = Ps[N(d 1 )] - S[N(d 2 )]e-rt OC- Call Option Price Ps - Stock Price N(d 1 ) - Cumulative normal density function of (d 1 ) ...

(d 1 )= ln + ( r + ) t Ps S v^2 2 v t 32 34 36 38 40 N(d 1 )= Black-Scholes Option Pricing ModelBlack-Scholes Option Pricing Mod ...