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Comparing Conventional and Non-Parametric Option Pricing

Comparing Conventional and Non-Parametric Option Pricing
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Author(s): Paul Lajbcygier (Monash University, Australia)
Copyright: 2005
Pages: 3
Source title: Encyclopedia of Information Science and Technology, First Edition
Source Author(s)/Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59140-553-5.ch083

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Abstract

Once, the seminal Black–Scholes (Black & Scholes, 1973) model was thought to be the last word on option pricing: all that was needed, it was thought, was some adjustments and it could be applied to price options on any financial instrument.

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