Question

Evaluate how models used for valuing stock options can be adapted to other underlying assets such as stock indexes.

Answer 1

Models being used for valuing stocks options can be adapted by many of its advantages. The models being used for stock options had a huge return on the past which can be observed having a proper research in 1980. Besides this, only a small amount of risk exposure serves a lot to trade off. Besides this, last but not the least is the protection from being the huge sufferers. This all circumstances proved that the model used for valuing stock options is much better than those of underlying assets like the stock indexes and so on.

answered by: anonymous