A Matter of Liquidity: Why the Black-Scholes Model Overvalues Conversion Options —Pluris Reviewed by Momizat on . Why The Black-Scholes Model Overvalues Conversion Options. The Black-Scholes method was the predominant model for many years, and was even endorsed by accountin Why The Black-Scholes Model Overvalues Conversion Options. The Black-Scholes method was the predominant model for many years, and was even endorsed by accountin Rating: 0
You Are Here: Home » Practice Management » A Matter of Liquidity: Why the Black-Scholes Model Overvalues Conversion Options —Pluris

A Matter of Liquidity: Why the Black-Scholes Model Overvalues Conversion Options —Pluris

Posted date: June 27, 2012 In: Practice Management

Why The Black-Scholes Model Overvalues Conversion Options.

The Black-Scholes method was the predominant model for many years, and was even endorsed by accounting rules prior to the introduction of FAS 157, even though it was never intended to be used for valuing complex securities or illiquid assets. Some have substituted lattice models or Monte Carlo simulation, making modifications or adjustment to attempt to compensate for illiquidity.

https://quickreadbuzz.com/wp-content/uploads/2012/06/Pluris_White_Paper_-_A_Matter_of_Liquidity1.pdf

The National Association of Certified Valuators and Analysts (NACVA) supports the users of business and intangible asset valuation services and financial forensic services, including damages determinations of all kinds and fraud detection and prevention, by training and certifying financial professionals in these disciplines.

Number of Entries : 2611

Related posts

©2024 NACVA and the Consultants' Training Institute • Toll-Free (800) 677-2009 • 1218 East 7800 South, Suite 301, Sandy, UT 84094 USA

event themes - theme rewards

Scroll to top
G-MZGY5C5SX1
lw