Student: Anna Kadlof*
Mentor: Rosemary Danaher
Major: Mathematics and Economics
Time: 2:00 - 2:20
This research looks at the evolution of option pricing. Options are derivative financial instruments that are based on an underlying asset, such as a stock. To price options accordingly, three economists formed the mathematical model called the Black-Scholes-Merton Model. I will explain the two types of options and their characteristics. From there, I will discuss the assumptions necessary to begin the derivation of the Model. The ultimate goal is to understand the derivation of the Model from the predetermined equation for the price of a stock.
* Honors Senior