The "generalized form" of BS uses the present value of the strike price,
but we don't need to discount the strike price for non-dividend paying stocks,
continuous dividend paying stocks,
currency,
futures,
etc.
Am I right in saying the ONLY scenario where you need to discount the strike price in the d1 formula (the ln(S/K) part) is if there is a discrete dividend, and no other time?
but we don't need to discount the strike price for non-dividend paying stocks,
continuous dividend paying stocks,
currency,
futures,
etc.
Am I right in saying the ONLY scenario where you need to discount the strike price in the d1 formula (the ln(S/K) part) is if there is a discrete dividend, and no other time?
When do we need to discount the strike price for d1 in Black-Scholes?
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