+1 (315) 557-6473 

Black Scholes theory assignment help by qualified tutors

We provide the best black Scholes theory assignment help at affordable prices. We have a dedicated team of experts that work hard to ensure that you get good grades.

Black Scholes Theory Assignment Help

Several students usually contact Statisticsassignmentexperts.com for help with Black Scholes theory assignments. These students trust us with their academic papers because they know that our experts are talented enough to produce world-class solutions within the stipulated time. You do not have to carry the burden of crafting exceptional solutions within a stringent deadline. Simply avail of our statistics assignment help service and have the peace of mind that you long for.

What is Black Scholes Theory?

The Black Scholes or BSM (Black Scholes Merton) theory is a mathematical model that is used to estimate financial instruments over time. This theory assumes that instruments such as stocks have a lognormal distribution of prices. The Black Scholes model also assumes that the price of heavily traded assets follows a geometric Brownian motion. The motion has a constant drift and volatility. The Black Scholes Model, when applied in stock, incorporates the time value of money, the strike price, variation of the stock, and the time of the stock's expiry. This was the first model to be used for option pricing. It can calculate the theoretical value of options using aspects such as:
  • The current stock prices
  • Expected dividends
  • Time of expiration
  • The strike price of the option
  • Expected interest rates
  • Expected volatility

The Black Scholes Model's formula was developed by Fischer Black, Myron Scholes, and Robert Merton. These economists introduced it in their paper, "The Pricing of Options and Corporate Liabilities." The article was published in the Journal of Political Economy in 1973. The BSM theory won a Nobel Prize in Economics in 1997 for finding a new method of determining the value of derivatives.

Assumptions made by the Black Scholes Theory

  • The volatility and risk-free rate of the option are constant and known
  • The returns are normally distributed
  • Market movements are efficient and cannot be predicted
  • No transaction costs are incurred in buying the option
Earlier, the Black Scholes model never considered the effects of dividends paid during the life of the option. However, it has frequently been adapted to account for dividends. The model does this by determining the ex-dividends date value of the underlying stock.

The Black Scholes Formula

The Black Scholes model involves complicated and intimidating mathematical concepts. Fortunately for students, they can sign up for our Black Scholes theory assignment help when they are stuck with their assignments. Additionally, when modeling strategies, they can use a variety of online calculators. The internet also boasts of a wide range of robust analysis tools like spreadsheets and indicators that can calculate and produce the pricing values of options. The Black Scholes Formula is calculated by: (Stock Price) x Cumulative Standard Normal Probability Distribution function - Net present value of the strike price x the Cumulative Standard Normal Distribution

In summary

The Black Scholes Model is an essential concept in modern-day financial theory. It is widely used today and regarded as one of the best ways of determining fair prices of options. Asset prices cannot be negative. They are bounded by zero. As a result, the BSM model assumes that prices follow a lognormal distribution. This concept is also known as a Gaussian distribution. In most cases, asset prices are observed to have some degree of fat tails (kurtosis) and right skewness. This means, the market often experiences high-risk downward moves than a normal distribution predicts it.

Limitations of the Black Scholes model

  • The Black Scholes model doesn't take into account that US options can be exercised before the expiration date. It only prices European options.
  • The assumption that dividends and risk-free rates may not be a reality
  • Volatility often fluctuates with the level of demand and supply
  • Most of the assumptions deviate from the real world
If you are facing hurdles with assignments related to Black Scholes theory. Hire our Black Scholes theory homework help experts today. Top-rated statistics assignment professionals offer statistics Assignment Expert's services. All our academic writers are knowledgeable in statistics and are well-versed with all the topics. It doesn’t matter how demanding or complicated your assignment is. Our experts are only a few clicks away, ready to assist you with assignments on topics such as:
  • Pricing formulas for look back and barrier options
  • Using PDE techniques and the reflection property of the standard Brownian motion Replication and martingale probability measures
  • probability measure of the corresponding discounted payoff
  • Pricing formulae for European put and call options
  • A class of exotic options
  • Random Network Models
  • The mathematics of the Black & Scholes methodology
  • The expression of European contingent claims as expectations with respect to the risk-neutral

Why students seek help with their Black Scholes Theory assignments

  • Inadequate knowledge of the topic
This area requires an in-depth understanding of mathematical and theoretical concepts. It is common for students to struggle with grasping these concepts. As a result, most statistics students faced with Black Scholes theory assignments often seek professional help. You do not have to wonder, “who can do my Black Scholes theory assignment?” Get in touch with our customer support team and have your task prepared by top-notch statistics tutors.
  • Limited time and Multiple tasks
Statistics related courses are comprehensive. In a single semester, a student can learn up to eight units. This means more learning and writing assignments. Unfortunately, most students are not good time managers. They may face challenges in creating time for their academic and extra-curricular activities. The professionals at Statisticsassignmentexperts.com can help you write all your statistics homework and ease your workload. Contact us if you cannot prepare exceptional solutions for your assignment on time.
  • Excellent Grades
Are you feeling low because your grades are average? Well, regardless of how poor you are at statistics, our assignment helpers can make sure you attain academic excellence. We assure you that the paper you will receive is meticulously prepared and has no flaws. It will force the hands of your professor to award you a decent grade.

What you stand to gain when you hire our seasoned experts

  • Fast deliveries
We are here to make sure that you never have to be anxious and stressed about your deadlines. We know that most professors are strict about submission dates. We aim to help you get into the good books of your professor. Our experts do everything possible to supply you with premium quality assignment papers way before your deadline. You will get time to familiarize yourself with the solutions before submission.
  • Unique and original papers
Plagiarism can cost you crucial marks or even your academic career. Our assignment writers are professionals in their work. They never provide our clients with recycled solutions. When you sign up for our service, you can only expect 100% original solution, written from scratch. Also, our experts consider all your requirements to the last detail.
  • Amazing prices, discounts, and seasonal offers
We know what you want, an entirely written assignment delivered on time, and at a fair price. Statisticsassignmentexperts.com is decorated with all these unique features. We can craft your assignment at a favorable rate that does not bore holes in your pocket. Additionally, you will get to enjoy several seasonal offers and jaw-dropping discounts when you become our loyal client.
  • Privacy guarantee
Your confidentiality is our top-most priority. We do everything possible to ensure that your identity remains anonymous to third parties