Tag: price

Call Option

See Also: Put Option Synthetic Stock Future Value Warrants Intrinsic Value – Stock Options Call Option Definition The call option definition is a right by an investor to buy an asset at a pre-determined price on or before a certain date known as the call option expiration. Call Option Explained The call option gives an

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Asset Market Value vs Asset Book Value

See Also: Accounting Income vs Economic Income Economic Value Added Value Drivers:Building Reliable Systems to Sustain Growth Basis Definition Variance Analysis Goodwill Impairment Asset Market Value versus Asset Book Value Book value and market value are two ways to value an asset. An asset’s book value can differ from its market value. Market value is the

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Black Scholes Option Calculation

See Also: Common Stock Dispersion Binomial Options Pricing Model Efficient Market Theory Black Scholes Option Calculation Model The Black Scholes option calculation (stock option pricing formula) uses five variables to compute the price of a stock option. The variables are the time remaining until the stock option expires, the price of the underlying security, the

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Binomial Options Pricing Model

See Also: Intrinsic Value- Stock Options Common Stock Definition Preferred Stocks Dispersion Risk Premium Binomial Options Pricing Model The binomial options pricing model is a tool for valuing stock options. Starting with certain given values, and making certain assumptions, the model uses a binomial distribution to calculate the price of an option. The binomial method

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Supplier Power

Supplier Power Definition “In Porter’s five forces, supplier power refers to the pressure suppliers can exert on businesses by raising prices, lowering quality, or reducing availability of their products. When analyzing supplier power, the industry analysis is being conducted from the perspective of the industry firms. In this case, it is referred to as the

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