No, not a dirty Google search! - but I have a simple question regaring this pricing model. Is this used for American Options pricing, and Black Scholes for European Options? Is that it, no other factors involved? Thanks, Andrew
i thought the black model is on pricing options on futures and forwards
Oh sh1t is that what it’s for? I need to duct tape the leaks in my head
Euro Options on futures. You’re absolutely right. Sorry I was too lazy to check before posting.
the ideea is the same just stock price is replaced with present value of futures/forward price that is about all I know about it
You have to adjust for the option of early settlement, that’s what the model does.