Valuation of options

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Because the value of options contracts depend on a number of different variables in addition to the value of the underlying asset, they are complex to value.

There are many pricing models in use, but most of them are based on one of the following:

• Black-Scholes
• Binomial
• Monte Carlo
• Whaley

[edit] See also

• Options
• Derivatives markets
• Financial engineering
• Financial mathematics

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