The Impact of Market Liquidity on the Effectiveness of Option Valuation with the Black-Scholes-Merton Model Using the Example of the WIG20 Index

The Black-Scholes-Merton model is one of the most popular option pricing models used in market practice. This model is based on unrealistic assumptions, including the lack of transaction costs. While it is not possible to satisfy all the conditions of the model, it is logical to assume that perfectl...

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Bibliographic Details
Main Author: Michał Prymon
Format: Article
Language:English
Published: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu 2022-01-01
Series:Nauki o Finansach
Online Access:https://journals.ue.wroc.pl/fins/article/view/203
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